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 vineyard wind machine caught fire in the early morning hours in Osoyoos Wednesday. (Osoyoos Fire Department Ryan McCaskill photo)
Flames from machine fire cast glow across Osoyoos Lake

A vineyard wind machine was engulfed in flames in the early morning hours Wednesday

B.C.’s 2021 budget is trending in the right direction to support farmers, says the BC Fruit Growers’ Association. (Phil McLachlan - Capital News)
B.C. budget receives thumbs up from Okanagan fruit growers

BCFGA general manager said budgetary investments put farming industry on a good trajectory for recovery

Cameron Baughen, solid waste management coordinator at the Regional District of the South Okanagan Similkameen, has been spreading the word of at-home composting around Penticton. (Photo - Pixabay)
RDOS and Penticton to launch compost facility study

The study will look at the impact and requirements for a new biosolid waste facility

BC Transit will offer free bus service in the South Okanagan and Similkameen on Earth Day, April 22. (Black Press file photo)
BC Transit to offer free Earth Day bus service in South Okanagan and Similkameen

Conventional routes, On-Request and handyDART services all included in day of free service

road closed
Mudslide closes Penticton road

Eastside Road is closed in both directions, take Highway 97 instead

A lone traveler enters the Calgary Airport in Calgary, Alta., Monday, Feb. 22, 2021. THE CANADIAN PRESS/Jeff McIntosh
VIDEO: Trudeau defends Canada’s travel restrictions as effective but open to doing more

Trudeau said quarantine hotels for international air travellers will continue until at least May 21

(Pixabay)
Kelowna man facing charges for bike theft

The Kelowna man allegedly stole an e-bike from the 2200-block of Harvey Avenue

Jessica Lynn Pihl
Woman believed to be in North Okanagan wanted by police

RCMP seek public’s help locating 37-year-old

Chart from the April 20 B.C. budget shows sharp dip in real estate sales early in the COVID-19 pandemic and the even steeper climb since late 2020. (B.C. government)
Hot B.C. housing market drives property transfer tax gains

B.C. budget boosts tobacco, sweet drinks, carbon taxes

President Joe Biden holds a virtual bilateral meeting with Canadian Prime Minister Justin Trudeau. (AP Photo/Evan Vucci)
U.S. to help Canada with more COVID-19 vaccine supply, Biden says

The U.S. has already provided Canada with about 1.5 million doses of the AstraZeneca vaccine

Lustenberger getting ready to go down one of the last unskied lines at Rogers Pass on Mt. Macdonald. (Photo by Andrew Mcnab)
Meet Christina Lustenberger — one of Revelstoke’s great skiers

The athlete has many first ski descents throughout B.C.

B.C. Finance Minister Selina Robinson leaves the assembly with Premier John Horgan after the budget speech Tuesday, April 20, 2021. THE CANADIAN PRESS/Chad Hipolito
Paid sick leave for ‘hard-hit’ workers left out of provincial budget: BCGEU

‘For recovery to be equitable it requires supports for workers, not just business,’ says union president Laird Cronk

A large crowd protested against COVID-19 measures at Sunset Beach in Vancouver on Tuesday, April 20, 2021. (Snapchat)
VIDEO: Large, police-patrolled crowds gather at Vancouver beach for COVID protests

Vancouver police said they patrolled the area and monitored all gatherings

Most Read