Recession? What recession?
That’s what the British Columbia Real Estate Association is asking these days, as the province’s housing market barges full steam ahead during the COVID-19 pandemic.
The organization’s latest market intelligence report, The Unusual World of Pandemic Economics, believes it has the reasons behind the recent housing market highs.
“The COVID-19 recession has battered many sectors of the B.C. economy,” BCREA chief economist Brendon Ogmundson said in a press release. “However, looking at recent data in the housing market, it would be difficult to tell there was a recession at all.
“In a typical recession, we would see falling demand and rising supply, but this recession is anything but typical.”
The BCREA originally believed housing prices would return to the pre-COVID-19 baseline in early 2021, but a surge of pent-up demand into an undersupplied market has prices at pre-COVID-19 levels well ahead of schedule.
“Pandemic economics are proving to be very unusual,” Ogmundson said. “Many of the trends we are seeing are without precedent and significant uncertainty remains, but we are cautiously optimistic that this housing recovery will continue.”
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