Millennials rush into the housing market to catch pandemic prices

A recent poll by Royal LePage shows that millennials in British Columbia are rushing into the real estate market in order to catch low home prices and purchase a property, following a market slowdown seen at the beginning of the pandemic.

Interest rates have fallen reducing borrowing costs sharply.

In addition to it, home prices also went down, so it’s a rare case when buyers can get both low rates and low prices.

Over the first few months of the pandemic, home sales slowed down, so the properties that were already listed remained at the market for a long time, while people waited to see the consequences of COVID-19.

As a result, we’ve seen the supply growing and mortgage rates remaining low.

At first, people tried to cope with the pandemic challenges and they didn’t even think about a house purchase. Now, they are more comfortable, so they enter the market.

The condo has started recovering, and detached houses are already high again, sometimes even with activities similar to the red hot 2017 market.

Although low rates are a great opportunity for buyers, market experts warn against being devastated by the fear of missing out. Often, first time homebuyers lose the bidding war for several times before they close the deal.

The poll, which interviewed 2,000 respondents, shows that almost half of 25 to 35 year-olds in B.C. already have their own property. Moreover, a quarter of them purchased it during the pandemic.