Predicted Trend of Migration into BC

Predicted Trend of Migration into B.C.

There may be a migration influx into Vancouver in 2015, especially due to the dip in oil prices in Alberta. In the past, there has been a net loss of residents from B.C. to Alberta and other parts of Canada, but the tides turned towards the end of 2014.

The drop in the Canadian dollar along with low interest rates will continue to attract overseas buyers. Newcomers to B.C. usually end up in Greater Vancouver or the Fraser Valley due to the affordability of the suburbs. However, the Business Council of B.C. expects that the housing market will continue to flourish in Metro Vancouver.

January Real Estate Activity

The Real Estate Board of Greater Vancouver reported there has been 8.7% increase in real estate transactions in January 2015 compared to 2014, and 14.9% increase above the 10-year average for January sales volume. In the suburb of Surrey, residential sales have increased by 10.5% over last January.

The real estate industry uses the home price index (HPI) to assess the market because it excludes the most expensive properties. The HPI benchmark in Greater Vancouver for detached homes hit a record $1.01 million this January. This is an 8.4% increase over the same month last year. New HPI records were made in January in both the west and east sides of Vancouver.

The suburbs offer more affordable options. The January HPI increased 3.5% over last year in the Fraser Valley for detached homes, and 2.5% over last year in Coquitlam for condos.