Low interest rates have acted as a catalyst for the pandemic real estate market. THE CANADIAN PRESS/Graeme Roy

Low interest rates have acted as a catalyst for the pandemic real estate market. THE CANADIAN PRESS/Graeme Roy

Millennial homebuyers benefiting from pandemic pricing

Mortgage rates at lowest in decades, helping people enter the market

B.C. millennials are jumping on the chance to buy homes, after a pause in the market early in the pandemic according to a new survey from Royal LePage.

Interest rates have dropped making borrowing costs lower than they’ve been in decades.

“I’m getting millennial clients come with pre-approved fixed five year mortgages of 1.5 per cent. I have never seen rates that low,” said Vancouver-based real estate agent Adil Dinani.

What’s unique this time is that house prices also dipped, so for once in a blue moon home buyers got low prices and low mortgage rates.

Dinani called it a rare alignment.

“It’s given an opportunity to buyers who thought they were priced out, or for whom the prices were unattainable. It’s not pushing folks into something they wouldn’t have done, it’s just letting them get in sooner than they would have expected,” he said.

mortgage rates by:Ratehub.ca

In the first few months of the pandemic, everything slowed down, including home sales. Properties that were already listed dragged on while people waited to see what the COVID-19 fallout would be.

And so inventory piled up, and interest rates stayed low.

“In the beginning people were just thinking about how to manage life, let alone buy a home. But now that they’re feeling more comfortable about things, including job stability, they’re getting into the market. I haven’t seen this segment of the market so active in probably three years,” Dinani said.

By now, he says the condominium market has bottomed out, and detached homes are already high again — in some areas as high as the 2017 “euphoric” market.

Royal LePage predicts prices will be nine per cent higher, on aggregate, than last year, and Dinani’s already seeing price half-way to that mark.

While low interest rates remain a good opportunity for buyers, he warns against making emotional the fear of missing out. Usually a term used to describe missing out on social events, Dinani said he’s starting to see it where first time homebuyers are being outbid of three, four, five even six times before finally getting to close the sale.

“You almost get fatigued to a certain point where you’re just like, let’s just get this done.”

The survey, which interviewed 2,000 subjects, found that almost half of 25 to 35 year-olds in B.C. already own their own home, and a quarter of them bought their first home during the pandemic.

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Real estate

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A new median has been built at the 40 Avenue and Highway 15 intersection. (Aaron Hinks photo)
Median installed at South Surrey ‘death trap’ intersection

New infrastructure prevents motorists from crossing 176 Street at 40 Avenue

(Contributed photo)
PHOTOS: South Surrey Unitarians take call for racial justice to street

‘When we see it in our lives, we can either say something about it or be complicit in it’

Neilson Grove Elementary students water their new cedar tree. As part of its commitment to reconciliation, the Delta School District is planting a cedar tree at every school and district site as a way to show appreciation and respect for local First Nation culture through its Giving Tree Project. (Delta School District photo)
Cedars planted at Delta schools as part of reconciliation

‘Giving Tree Project’ a way to show respect and appreciation for First Nation culture

Surrey Eagles forward Michael Abgrall had two goals and two assists in a pair of weekend victories. (Damon James photo)
Surrey Eagles’ offence soars in pair of lopsided victories

BC Hockey League squad scores 22 goals in two wins over Powell River, Coquitlam

In this image from NASA, NASA’s experimental Mars helicopter Ingenuity lands on the surface of Mars Monday, April 19, 2021. The little 4-pound helicopter rose from the dusty red surface into the thin Martian air Monday, achieving the first powered, controlled flight on another planet. (NASA via AP)
VIDEO: NASA’s Mars helicopter takes flight, 1st for another planet

The $85 million helicopter demo was considered high risk, yet high reward

The Abbotsford Centre has the ability to host AHL level games if the Vancouver Canucks or any other NHL team chose to move its affiliate to the arena. (File photo)
Abbotsford Centre ready for AHL if right opportunity presents itself

Building recently upgraded glass and boards, schedule would allow for AHL tenant

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Carver Ken Sheen had almost finished work on a large cowboy carving commissioned by the City of Williams Lake to replace the original overlooking the Stampede Grounds when fire broke out Friday, April 18 at his property between Williams Lake and Quesnel. (Pine River Carving Facebook photos)
Cow boss statue destined for Williams Lake Stampede Grounds goes up in flames

Carver Ken Sheen lost the statue, all his tools and his shop in the blaze

B.C. Labour Minister Harry Bains. (Hansard TV)
B.C. moves to protect employee pay for COVID-19 vaccination

Most won’t need to take time off work, labour minister says

Vancouver Police Department. (Black Press Media files)
Abbotsford man named as victim of fatal weekend shooting in Vancouver

Harpreet Dhaliwal, 31, killed outside of Cardero’s restaurant in Coal Harbour

New figures show Canadian housing prices outpacing those in other developed countries. (Black Press Media file photo)
Canadian housing prices fastest rising in the world

Relative to 2000, housing prices have risen by a factor of more than 2.5

Most Read