Interest Rates Main Cause for Hot Market According to Recent Survey of BC Public
TAGS: Consumer Survey Hot Housing Market Interest Rate Multiple Offers Public Opinion Real Estate Practice
Canada's hot housing market has led to headlines from coast to coast over the last several months. Here in BC, the market has been historically busy, with a record-setting number of sales month after month, and home prices following suit.
We wanted to know what the general public thinks about the current state of the market. So, with the support of public opinion firm Research Co., we asked a sample of the BC public a number of questions. From the causes of the historically busy market to Realtor practice, and potential measures to cool the market, the public weighed in on a range of topics.
Here are some of the results...
- LISTEN: Open House by BCREA - What Does the Public Really Think About the Hot Market? Research Co. president Mario Canseco breaks down the results of his recent public opinion survey.
Causes of the hot market
When the public was asked about the causes of the hot market, more than two in five British Columbians (43 per cent) chose historically low interest rates as the main factor.
Nearly thirty percent believe the COVID-19 pandemic is the main factoring, including 45 per cent of respondents in the 18-34 age bracket.
Only 10 per cent of respondents believe the behaviour or Realtors is the main cause of the market conditions.
On the topic of government intervention, three in five respondents (62 per cent) think the provincial government should "definitely" or "probably" intervene to slow down the real estate market.
That number increases to 71 per cent in the 18-34 age bracket, and 72 per cent for renters.
The response to federal government intervention is similar, with a majority of respondents saying the government should "definitely" or "probably" intervene.
Specific measures to cool the market
In terms of the mechanisms that could be considered to slow down the real estate market in BC, respondents were asked if it would be a good or bad idea to respond with a number of measures.
Increasing housing supply was endorsed by 75 per cent of respondents, while the lowest level of support was for raising interest reates, with 35 percent in favour, and 47 per cent considering this a bad idea.
For more on the result of the survey, including analysis from Research Co. president Mario Canseco, listen to the April 2021 episode of the Open House by BCREA podcast.
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