The British Columbia Real Estate Association (BCREA) is calling for significant amendments to British Columbia’s short-term rental laws to mitigate the disruption they’ve caused for specific business and tourism sectors across the province, the association announced last week.

On May 1 this year, the B.C. Government enacted a widespread ban on short-term rentals, with the intent of returning homes to the long-term rental market.

British Columbians negatively affected by the ban

As part of a new housing policy resource hub launched leading up to the 2024 Provincial General Election, BCREA identified multiple groups of British Columbians negatively affected by the ban.

These groups include:

• medical employees transferred to remote areas
• those receiving multi-week medical care as well as caregivers in urban areas
• film sector workers in town for weeks at a time
• those attending or employed by short-term but large events for which hotel space is inadequate (such as a Taylor Swift concert or the FIFA World Cup 2026)
• those needing short-term housing due to delays in being able to take occupancy of homes or apartments

The BCREA proposed several exemptions from the ban across several categories, including these groups and high-tourism areas.

Additional considerations besides housing affordability, BCREA stresses

As part of the analysis, the BCREA stressed that provincial and regional economies need to be factored into policy decisions of this magnitude.

“While housing affordability is extremely important, there are additional considerations in communities across B.C. that have been paved over with the implementation of this policy,” explains Trevor Hargreaves, BCREA senior VP, policy and research. “There are numerous exemptions desperately needed to make this a workable and successful policy moving forward.”

Hargreaves adds, “There is no question that some of these short-term rental units should be functioning as long-term rentals, but there are some legitimate uses for short-term rentals that are no longer permitted under the legislation.”

The BC Real Estate Association (BCREA) and the Canadian Mortgage Brokers Association — British Columbia (CMBA-BC) are asking the B.C. Government to amend and refine recent changes to the Residential Tenancy Act (RTA).

Changes laid out in Bill 14, which amends the RTA and is intended to protect residential tenants from tenancies terminated in bad faith, came into effect on July 18, 2024.

Inadequate consultation; changes could worsen instead of alleviate tenant & housing issues

Trevor Hargreaves, senior vice president of government relations, marketing & communications, BCREA, explains: “We appreciate the efforts to protect tenants from bad-faith evictions and the need to provide more rental supply but are concerned the policy changes appear to have been crafted without adequate consultation with related sectors in terms of the multitude of related issues they will cause. These changes are inadvertently making it more difficult for all buyers, but especially first-time buyers, many of whom are currently tenants, to enter the housing market.”

Rebecca Casey, president, CMBA-BC, agrees: “We appreciate the B.C. Ministry of Housing’s commitment to addressing housing challenges and protecting tenants’ rights. However, while we await accommodations or changes to the Act, we are concerned that these amendments will worsen these issues rather than alleviate them, potentially compromising the stability and affordability for current and prospective tenants and home purchasers.”

Both organizations published open letters outlining concerns about unintended consequences and the high likelihood that the changes will negatively impact homebuyers, rental-property owners and tenants in the province. The letters note points of confusion that will create difficulties when the rules are used in transactions.

BCREA’s concerns

These are the main concerns BCREA noted in its letter to government:

1. The new requirement of providing four months’ notice – instead of the previous two months’ notice – for evictions due to personal or caretaker use is posing a major hurdle. While this is a problem for all buyers, it’s particularly problematic for high-ratio buyers, including first-time buyers, who generally need mortgage default insurance to secure their financing.

2. The new legislation makes no distinction between a buyer of a tenanted unit who just wants to move into their new home and a landlord who might be using a bad-faith eviction as a tool to raise rents beyond the allowable limit.

3. Combining a four-month eviction notice with a 30-day dispute notice produces an effective five-month period in which a buyer can’t take possession of their new home. This is impractical for buyers moving from one home to another and is too long a period to wait between completions.

4. Without default mortgage insurance, lenders require a minimum down payment of 20 per cent for rental properties. First-time buyers typically do not have the financial capacity for such a significant down payment. Furthermore, a default-insured mortgage holder must receive vacant possession to qualify for a default-insured mortgage and cannot close on a purchase where the former tenant has not vacated the home.

5. A home must be owner-occupied to be eligible for homeowner insurance and also for mortgage insurance from Canada’s largest providers of mortgage insurance, including Canada Mortgage and Housing Corporation (CMHC).

6. Using a new web portal, landlords will be required to provide personal and confidential details about the persons moving into the home, which will then be shared with the tenant. This new requirement is raising serious implications for the privacy and security of owners.

CMBA-BC’s added concerns

CMBA-BC added input around the mortgage approvals timeline, increased financing risks and legal and liability concerns.

1. The four-month notice period creates a misalignment with the typical 90 to 120-day rate hold period for mortgage approvals. Buyers, especially those with less than 20 per cent down payment, may face significant challenges in coordinating the vacancy of the property with their mortgage approval timeline, potentially leading to funding denials or increased costs for buyers. These changes will impact first-time homebuyers the most as these are the most typical buyers of previous rental properties.

2. Buyers may be forced to remove financing conditions from their offers without a guaranteed mortgage approval due to the extended notice period. This leaves them vulnerable to interest rate fluctuations and other factors that could impact their ability to qualify for the mortgage, heightening their financial risk.

3. The new timeline could increase the risk of purchase contract cancellations, as buyers may struggle to secure financing within the extended period. This could lead to legal disputes or lawsuits, adding stress and financial risk for all parties involved.

Recommendations for government

Due to these and other concerns, the organizations recommend the following to the provincial government:

1. Adjust the notice rules for conventional mortgage buyers to allow for vacant possession within no longer than a three-month time period.

2. Allow high ratio insured buyers (including first-time buyers) who will be occupying the property to continue to have a two-month notice period because of the financial hardship caused by a longer delay in them taking possession of their property, and the likelihood of them running afoul of financing restrictions.

3. Require that the privacy of new buyers be protected. Use existing, publicly accessible systems as the source of information on new buyers to be reported by landlords to former tenants. Contracts of Purchase and Sale are confidential documents and should not be shared with tenants. A standard Statutory Declaration form should be developed to carry out any necessary disclosures.

4. Eliminate the reporting requirement for buyers who intend to occupy their own units. The buyer’s intent could be documented by use of a Statutory Declaration or as part of the Property Transfer Tax return process. An early sale of the unit could be tracked through the Land Titles or B.C. Assessment systems.

BCREA also reiterated its past call for the B.C. Government to create a permanent housing roundtable comprised of housing policy experts and other representatives from organizations across the housing sector in B.C. The association said that this type of group would be able to provide early advice to government in the creation of new or updated housing policy, such as changes to the RTA.

As a former managing broker and realtor, Trevor Koot’s nearly two decades in organized real estate gives him hands-on expertise in understanding the profession’s needs.

Today, as CEO of the British Columbia Real Estate Association (BCREA), Koot says he really believes that his role is not a tangible thing. 

‘(I’m) as much a critic of the industry as (I am) a champion … that balance makes me a better leader’

“It’s not to say this is what I do. What I like to think is that my role is to facilitate conversations that create impact for the industry,” he says. “That can change. That can look like a lot of different things but really it’s just having conversations with the right stakeholders at the right time to ensure that the industry is progressing, that consumers continue to be served by realtors in the future and that realtors have a place within the ecosystem of real estate transactions.

And we do that by creating impact, by knowing what changes need to happen, by facilitating those changes but also standing up for the industry when it comes to making those changes.”

Koot says he is as much a critic of the industry as he is a champion. Making sure that he can wear both of those hats to create that impact is important to him. “I think that balance makes me a better leader in this industry,” he points out.

Experienced ‘all of the beauty that is Canada’ between three coasts

Koot has lived in five provinces and one territory. He was born in Simcoe, Ontario and moved to Frobisher Bay, Northwest Territories (now Nunavut) when he was still young, grew up in New Brunswick, lived in Alberta, started his career in Saskatchewan and then moved to B.C.

“I’ve gone coast to coast to coast and experienced all of the beauty that is Canada,” he says.

Koot received a Bachelor of Science in kinesiology with a minor in mathematics from the University of Saskatchewan, and he recently completed a Master of Business Administration through Royal Roads University. Koot is adding to his extensive education through his current pursuit of completing a Master of Laws degree at York University.

Getting into real estate

He got into the business of real estate initially in Swift Current, Sask. after getting his real estate license in 2005. Koot began with Re/Max and then bought a Century 21 brokerage in 2007. He also started a property management company in between and grew that to 1,000 units in five Saskatchewan cities. While there, he was chair of the Saskatchewan Real Estate Commission for five years and played a key role in redrafting provincial real estate regulations during his tenure.

Prior to taking on his role at BCREA in 2022, Koot served as CEO of the Kamloops and District Real Estate Association for four years and the Kootenay Association of Realtors for three before successfully merging the two into the Association of Interior Realtors.

“I’ve worn all of the hats,” says Koot, who has been a competitive bodybuilder on the international stage. He also has had an acting career and owned a gym and supplement store called Iron Office. This was all in place while living in Saskatchewan before Koot decided to move to Kamloops.

‘My priority is to make sure the realtor continues to be central to the real estate transaction’

“I really believe there’s a future that exists without realtors. There is a future that can happen where realtors don’t (even) exist … let alone being part of the transaction,” Koot explains. “My priority is to make sure that’s not the future that transpires. My priority is to make sure the realtor continues to be central to the real estate transaction.”

He says the biggest challenge the industry faces today is the desire for and connection to legacy, and protectionism to the existing models that come with that. 

“It’s hard to convince stakeholders to embrace change when the primary role that they see for themselves is to protect the way things are. That’s going to be the biggest challenge for any leader in the real estate sector or the industry at large. It’s to create an environment where they can actually convince the folks who are being impacted by change to embrace that change because of a bigger outcome because of that future state.

Organized real estate is really, really good at celebrating legacy and protecting the existing structure, and that will be the demise of the sector if that’s the sole focus.”

Other major industry challenges

Koot notes there are fewer realtors today stepping up to be a managing broker. A large number of current managing brokers are reaching retirement age and looking at exit strategies. He feels there’s a lack of conversation around succession planning for brokerages and for the role of managing brokers.

“And I really think that this is potential for a kind of perfect storm that’s either going to challenge the industry or require regulatory intervention to make sure there are enough managing brokers moving forward,” he predicts. “When we talk about challenges or things on the horizon that I see being major and very impactful, that would be another one.”

Last month in British Columbia, there were 8,075 residential sales, 11.6 per cent less than the same time last year, according to the British Columbia Real Estate Association (BCREA).

Average price and total sales

B.C.’s average listing price in May was down to $1 million, a 1.5 per cent drop compared to the average price of $1.02 million in May 2023. As well, total sales dollar volume was down in the same period by 13 per cent, to $8.1 billion.

“Markets could not match the surge in home sales that occurred this time last year,” says BCREA chief economist Brendon Ogmundson. “However, we are starting to see a pickup in sales activity to more normal levels, which, combined with rising inventory, is helping to keep markets in balanced territory.”

Year-to-date

So far this year, B.C. residential sales dollar volume is up 2.7 per cent to $31.5 billion, compared with the same time in 2023. Residential unit sales were flat year-over-year at 31,573 units, and the average listing price was up 2.6 per cent to $997,899.

Get more details here.

The British Columbia Real Estate Association (BCREA) released its 2024 Second Quarter Housing Forecast yesterday.

This year, sales in the province are forecast to increase by 7.8 per cent to 78,130 units, while the association expects sales in 2025 to rise to 86,480 units.

“After a slow start for the housing market in 2024, all eyes are on the Bank of Canada. Although fixed mortgages are down significantly, it appears that buyer confidence is hinging on seeing the Bank lower its policy rate,” says the BCREA’s chief economist, Brendon Ogmundson.

”Given weak economic growth, a slowing labour market and a downward trend in inflation, we expect that the Bank will begin to loosen monetary policy this summer, which should spur some pent-up demand off the sidelines.”

The issue of price growth and supply

The association notes that with affordability challenges and prices increasing in recent months, new listings supply will need to keep up with sales. They’re confident that listings will rebound from an almost record low in 2023, which will help keep average price growth to about 1 to 2 per cent this year.

Forecast by area

Here’s how the unit sales and average price forecast looks by area.

Source: BCREA Economics

Check out the full interactive housing forecast here.

Last month at its annual meeting, the British Columbia Real Estate Association (BCREA) announced that Sooke realtor Tim Ayres has been elected as its 2024-2025 chair. Ayres has been licensed since 2004 and served on BCREA’s board since March 2020. He focuses on residential sales on Vancouver Island.

“I am very excited to be selected to lead our provincial professional organization as its 2024-2025 chair,” says Ayres. “Supported by a strong board of directors, CEO and staff, I anticipate that BCREA will continue to advocate for realtors and consumers on housing issues that affect us all in British Columbia, promote professionalism and professional development among the realtor community and continue to be a trusted source of real estate economic data in B.C.”

Ayres has volunteered with the Victoria Real Estate Board (VREB) since 2006 on numerous committees and on the board of directors from 2009-2015. He’s also served the Canadian Real Estate Association as a committee member and on its board of directors from 2016-2018.

“Our profession is always changing, and BCREA is here to be a proactive participant, leading the conversation surrounding real estate and housing issues in the province,” Ayres notes.

Joining him as officers of the association are chair-elect Chris Shields of Macdonald Realty, past chair Darren Close of Re/Max Generation and BCREA chief executive officer Trevor Koot. 

BCREA also welcomes:

• new realtor director Daniel John (Richmond)
• new public director Andy Pham
• returning realtor directors Ruth Hanson (Vancouver), Kim Heizmann (Kelowna), Darcy McLeod (Vancouver), Ashley Smith (Vancouver) and Robert Wood (Kelowna)
• returning public directors Catherine Aczel Boivie and Amanda Magee

Earlier this month, a group of realtors from Greater Vancouver hosted a gala that raised $52,000 to support Camp Choice BC and its August camp funding.

Over 260 realtors were in attendance at Vancouver’s Italian Cultural Centre, including the CEO of Greater Vancouver Realtors (GVR), Jeff King, and the CEO of the British Columbia Real Estate Association (BCREA), Trevor Koot.

Gala highlights

The annual Camp Choice Gala is a cornerstone event for the organization’s fundraising. It includes sharing stories, hearing testimonials and seeing performances from teens who attended the camp and participating in a silent auction with a live auctioneer.

It was this auction that was the “standout” moment of the night, according to Phil Moore, vice chair, event organizer, facilitator and mentor at Camp Choice BC: “Myself, John Patricelli and Juliana Vallee offered four hours of (chores or) cleaning services, raising over $20,000.

These efforts are vital, as they ensure we can offer this life-changing experience to 50 to 60 youth without turning anyone away due to financial barriers.”

Phil Moore, Trevor Koot (BCREA) and Jeff King (GVR)

Vallee, who has been a part of the organization for the past two and half years and now sits on the board of directors, notes the bids started at $200 and jumped by the hundreds and then into the thousands. “Finally, a business owner jumped up and bid $20,000 which translates to sending approximately 20 youth to the camp,” she highlights. 

The leadership camp experience

Each year, the group fundraises (about $50,000-$70,000) for and hosts a one-week camp at Zajac Ranch in Mission, B.C., welcoming 50-60 youth facing challenges such as substance abuse, self-harm and underprivilege.

Every dollar is spent to maximize the positive impact on the youth served, ensuring they receive the full benefit of their experience at Camp Choice BC.

As facilitators and mentors, Moore, Patricelli and Vallee lead various sessions, providing guidance and support to both attendees and volunteer youth coaches. The program is designed to empower, inspire and transform, helping participants see beyond their current circumstances.

Each day is wrapped up with workshops and fun activities that bring out self-growth, powerful messages and opportunities to connect with others.

“These individuals have unique life situations and stories. Most of their experiences up to now have built in them emotional and rational processes that have not been serving them to choose well or receive all possible opportunities in life. There are levels of challenges they have had to face,” Patricelli, Camp Choice’s president and lead workshop facilitator, explains. “It’s about exploring their thinking process (and) opening up if they feel comfortable.”

At the end of the week, the team observes how participants have connected with each other. “In a short period of time, we notice a lightness to their smiles, a confidence we didn’t see before and a desire to return as well as continue growth. They have fun, meet new friends and build bonds that last,” says Patricelli.

Vallee agrees: “(It) allows kids to be kids and brings out and pushes them to be the best they can be. Youth come out of the camp inspired and empowered. Many who have attended stated that because of this camp, their lives have changed.”

She explains that not only are relationships built during the camp between the youth and coaches, but the relationship, mentorship and follow-up with the youth continue after it’s over.

The trio’s inspiration

Moore’s background with the Vancouver Police Department, particularly admiring the school liaison program, laid the foundation for his commitment to supporting youth at risk. “Discovering a program through PSI Seminars that brought leadership opportunities to young people from Oakland to a ranch in Napa Valley sparked the idea for Camp Choice BC.”

Patricelli describes himself as “someone whose youth (went from being) filled with wrong choices and living consequences of those choices to experiencing the power of redemption from personal mistakes … learning that at any moment one can make a choice that will also lead to success and better relationships with others.” He says this — and the higher calling he felt — is why he decided to get involved with Camp Choice.

So, alongside Patricelli and with Vallee on the board of directors, “(We) aimed to create a similar beacon of hope and leadership for youth in British Columbia,” Moore recalls.

About Camp Choice

Camp Choice was first founded in San Francisco a few years before it came to B.C. in 2016. “Over the last eight (years), the Camp Choice vision has maintained strong and the board of directors has evolved,” Patricelli says.

Camp Choice started as a non-profit organization and hosted its first leadership youth camp in 2017. After more growth and awareness, elevated fundraising (and the ability to provide tax receipts) became more essential to attract larger donations — which primarily come from realtors — it was registered as a charity in 2019.

About this year’s event and overall, Moore says, “We’re deeply grateful for the support from the realtor community, which has been instrumental in our ability to make a difference in these young lives. It should be noted that many of our volunteer camp counselors are realtors. We look forward to continuing this work, inspired by the transformations we witness each year.”

Learn more about Camp Choice BC here.

The British Columbia Real Estate Association (BCREA) reports 3,979 residential unit sales were made in January this year, an increase of 29.4 per cent from the same time in 2023.

In January, B.C.’s average MLS residential price was up 10.5 per cent at $957,909 compared to the low-point for average prices over the past two years, $866,922.

Source: BCREA

Total sales volume

The association reports total sales volume was $3.8 billion, an increase of 42.9 per cent from the same time last year.

“Home sales are on a clear uptrend to start 2024,” BCREA’s chief economist, Brendon Ogmundson, notes. “A sharp decline in fixed mortgage rates and expectations for future Bank of Canada rate cuts is driving sentiment in the market and bringing pent-up demand off the sidelines.”

The total number of active listings is up year-over-year but remains relatively low by historical standards.

Looking ahead

New listing activity is potentially normalizing from the down year of 2023. BCREA notes this will be key in keeping markets balanced as sales ramp up.

Get more detailed statistics here.

Last month, the British Columbia Real Estate Association (BCREA) released its 2024 First Quarter Housing Forecast Update.

In 2023, British Columbia experienced its slowest housing activity since 2013, with home sales totaling 73,000 as elevated mortgage rates deterred both buyers and sellers. However, a recent decline in mortgage rates, coupled with potential rate cuts by the Bank of Canada, is expected to revitalize the housing market in 2024 and set the stage for a strong 2025.

More specifically, the update reveals that this year, MLS residential sales in British Columbia are expected to increase 7.8 per cent to 78,775 units. Next year, MLS residential sales are forecasted to rise to 86,475 units.

“We expect a delicate balance between rising sales and normalizing inventories”

Brendon Ogmundson, the association’s chief economist, weighs in:

“In 2023, the housing market faced headwinds due to elevated mortgage rates, but the recent decline in fixed mortgage rates and potential Bank of Canada rate cuts present an optimistic outlook for 2024. As we navigate through 2024, we expect a delicate balance between rising sales and normalizing inventories, which should lead to a relatively quiet year for prices.”

Bank of Canada expected to lower policy rate

The update indicates thanks to the progress in lowering inflation back to 2 per cent and softer economic growth and employment, a stringent monetary policy is less needed. For this reason, the BCREA anticipates the Bank of Canada will lower its policy rate (to 4 per cent by end of year) which will lead to higher home sales in the province. This belief has already led to drops in some fixed mortgage rates to below 5.5 per cent, stimulating affordability.

While there’s a risk of rapid price appreciation if sales outpace inventory, the prospect of higher mortgage payments could lead to a larger influx of new listings, resulting in a more balanced market with stable pricing.

Read the full update here.

As Canadians from coast-to-coast struggle to find a place to call home, REALTORS® continue to play an important role in helping address the country’s housing crisis.

For nearly four decades, REALTORS® have been advocating the federal government on behalf of Canadian homeowners, buyers, sellers and renters. REALTORS® have fought to make finding a home easier for Canadians by pushing for an increase in social housing, subsidized housing options and emergency shelters, to name a few initiatives.

A cornerstone of these advocacy efforts is the Canadian Real Estate Association (CREA)’s Political Action Committee (PAC) Days. Each year, REALTORS® from across the country converge on the nation’s capital to meet with Members of Parliament (MPs) and propose innovative housing solutions that would benefit the entire housing continuum and get more housing supply built across this country.

This year was no different.

From October 15 to 17, over 420 PAC reps made their presence known on Parliament Hill through more than 140 meetings with their local MPs. This year’s PAC Days programming also included:

• panels from MPs, journalists and political insiders,
• the latest information from pollsters,
• lively discussions on housing, innovation and sustainability and
• presentations from Sean Fraser, Canada’s minister of housing, and Pierre Poilievre, the official leader of the opposition.

CREA believes addressing the housing crisis should be a top priority for all political parties. The Canada Mortgage and Housing Corporation (CMHC) estimates that 5.8 million new homes need to be built across the housing continuum to bring affordability into balance. But, at the current rate of construction, Canada will be short 3.5 million homes by 2030. CREA is committed to ensuring all Canadians have access to housing and will remain focused on championing innovative and practical solutions.

REALTOR® recommendations

During CREA PAC Days 2023, PAC reps brought forth three recommendations to the federal government.

Recommendation 1: Permanent national housing roundtable

The first recommendation is the establishment of a permanent national housing roundtable. This roundtable would bring together federal, provincial/territorial and municipal authorities, along with builders, real estate professionals, Indigenous partners and civil society organizations.

Its purpose is to foster an inclusive, holistic approach to addressing the housing crisis through collaboration, innovation and policy coordination.

Canada’s housing crisis is a national priority that impacts not only individuals and families but also the overall economy and social fabric of the country.

Recommendation 2: Housing supply and infrastructure

International research indicates good infrastructure is integral to thriving, inclusive communities and can be leveraged to address the housing shortage. The second recommendation entails that any new federal infrastructure funding for municipalities, provinces and territories must include conditions requiring the creation of new housing indexed to population growth.

Recommendation 3: Immigration and housing

In the face of labour shortages in the construction industry, the third recommendation calls for the development of a housing workforce immigration strategy. This strategy aims to attract skilled tradespeople from abroad while streamlining the immigration process for qualified professionals willing to work in the construction sector.

Recognizing the importance of these policies, in partnership with the British Columbia Real Estate Association (BCREA) and the Ontario Real Estate Association (OREA), CREA recently commissioned new research that highlights how immigration can be used to address labour shortages in Canada’s construction sector. The Conference Board of Canada’s lead researcher presented her findings during PAC Days.

In the aftermath of CREA PAC Days, Immigration Minister Marc Miller announced an updated immigration system, which included the need to attract more skilled construction workers from overseas to help build more housing across this country.

The 2023 Fall Economic Statement, tabled by Deputy Prime Minister Chrystia Freeland, underscored the government’s commitment to housing, aligning with many of CREA’s recommendations. For example, tying funding for infrastructure projects to building more homes and prioritizing permanent residency for construction workers from abroad with skills that can help build more homes faster. The statement also included a new Canadian Mortgage Charter which includes a long-held REALTOR® position advocating against the requirement for insured mortgage holders to requalify under the insured minimum qualifying rate when switching lenders at mortgage renewal.

As part of one of Canada’s largest single-industry organizations, the unified, collective voice of more than 160,000 REALTORS® is strong and impactful. Learn more about how CREA advocates for a legislative and regulatory environment that enables REALTORS® to better serve Canadian homeowners, aspiring homeowners, renters and communities across Canada at CREA.ca/advocacy.

Image: Members of the REALTORS® Association of Hamilton-Burlington meet with The Honourable Karina Gould, Member of Parliament of Burlington, during CREA PAC Days 2023.