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

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
110 new cases of COVID-19 in Interior Health

Provincial health officers announced 1,005 new cases throughout B.C.

It costs as little as $7 to charge an EV at home. (Scott Tibballs / The Free Press)
Electric Vehicles a rare sight (in the Kootenays), but change on the way

Electric pickups will increase the appeal of zero-emission vehicles in years to come according to Blair Qualey of the New Car Dealers Association

Linda Krawczyk and her dad Doug Finney enjoyed a ride around beautiful Fernie on Friday thanks to Melanie Wrigglesworth and the local chapter of Cycling Without Age. (Scott Tibballs / The Free Press)
Cycling Without Age goes for its first spin

Doug Finney (86) got to enjoy a ride around Fernie

The Cranbrook Community Forest is good to go for mountain biking. (Scott Tibballs / The Free Press)
Snow’s done, time to hit the trails

South Country trails are good to go

Interior Health nurses administer Pfizer-BioNTech COVID-19 vaccines to seniors and care aids in Kelowna on Tuesday, March 16. (Phil McLachlan/Kelowna Capital News)
69 new cases of COVID-19 in Interior Health

The total number of cases in the region is now at 9,840 since the pandemic began

Vancouver resident Beryl Pye was witness to a “concerning,” spontaneous dance party that spread throughout social groups at Kitsilano Beach on April 16. (Screen grab/Beryl Pye)
VIDEO: Dance party erupts at Vancouver’s Kitsilano Beach to the dismay of onlookers

‘It was a complete disregard for current COVID-19 public health orders,’ says Vancouver resident Beryl Pye

A syringe is loaded with COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. to open up COVID vaccine registration to all B.C. residents 18+ in April

Registration does not equate to being able to book an appointment

(Black Press file photo).
Multiple stabbings at Vancouver Island bush party

Three youths hospitalized after an assault in Comox

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

Selina Robinson is shown in Coquitlam, B.C., on Friday November 17, 2017. British Columbia’s finance minister says her professional training as a family therapist helped her develop the New Democrat government’s first budget during the COVID-19 pandemic, which she will table Tuesday. THE CANADIAN PRESS/Darryl Dyck
B.C. finance minister to table historic pandemic-challenged deficit budget

Budget aims to take care of people during pandemic while preparing for post-COVID-19 recovery, Robinson said

Each spring, the Okanagan Fest-of-Ale is held in Penticton. This year, as a result of the COVID-19 pandemic, the festival will not be held. However, beer is still available. How much do you know about this beverage? (pxfuel.com)
QUIZ: How much do you really know about beer?

Put your knowledge to the test with this short quiz

Lord Tweedsmuir’s Tremmel States-Jones jumps a player and the goal line to score a touchdown against the Kelowna Owls in 2019. The face of high school football, along with a majority of other high school sports, could significantly change if a new governance proposal is passed at the B.C. School Sports AGM May 1. (Malin Jordan)
Power struggle: New governance model proposed for B.C. high school sports

Most commissions are against the new model, but B.C. School Sports (BCSS) and its board is in favour

Pall Bearers carrying the coffin of the Duke of Edinburgh, followed by the Prince of Wales, left and Princess Anne, right, into St George’s Chapel for his funeral, at Windsor Castle, in Windsor, England, Saturday April 17, 2021. (Danny Lawson/Pool via AP)
Trudeau announces $200K donation to Duke of Edinburgh award as Prince Philip laid to rest

A tribute to the late prince’s ‘remarkable life and his selfless service,’ the Prime Minister said Saturday

B.C. homeowners are being urged to take steps to prepare for the possibility of a flood by moving equipment and other assets to higher ground. (J.R. Rardon)
‘Entire province faces risk’: B.C. citizens urged to prepare for above-average spring flooding

Larger-than-normal melting snowpack poses a threat to the province as warmer weather touches down

Most Read