…especially in the condo market.
When you think of the booming housing market across Canada, you are likely to think about certain major cities across the country. With one of them being, Vancouver – many residents and new homeowners have as a result, decided to venture outside of the city and move to the suburbs where the reality is, it is less expensive.
With that said, times have changes. If we think back to 2016, when this was the norm, now a mere two years later – and the housing market in the suburbs is now also expanding just as fast.
While, this began with detached houses, now it is the condo market that is also growing at a rather intense pace. To put things into perspective, condos prices in the suburbs of Vancouver soared to an average of 1 million dollars last month. These prices have now reached record breaking values, for this already pricey region of Canada.
As a result, this is causing many home buyers to venture even further away from the west coast of Vancouver in search of more affordable homes and condos.
Another reality is that this has also lead to bidding war, after bidding war, as potential homeowners are becoming more desperate with regards to buying a home in these areas. As you can expect, this occurrence has contributed to a spike in home prices – up 31% from the previous year.
Condo bidding wars have also continued to be the recent norm, as many home buyers are also eager to make these purchases prior to the increasing interest rates that Canadians are likely to see again in 2018. In fact, on average, condos in the Fraser Valley have typically sold for well over the asking price – and if December and January’s totals of 59% and 53% over-asking price is any indication of this pattern, February’s totals may also continue to follow suit.
Another reason behind the soaring condo sales in the Vancouver suburbs also has to do with that fact that the condo flipping trend has also continued. That said, within a 12 month period, condo sales associated with condo flipping, specifically are responsible for 7% of January sales. The action of condo flipping has never been more synonymous with it’s actual meaning, as it is now only 8 days on average that a condo is on the market for before it is ‘flipped’.
While home buyers in the Vancouver suburban areas continue to seek out that allusive afford-ability-factor, one thing is for sure, house prices, particularly condos, continue to reach un-seen heights. That said, the bidding wars and the hunt for a home of their own persists still
In the end, if you are in the market for a detached home or a condo in the Vancouver region, continuing to follow these trends will be an important course of action for you. If bidding wars and relatively small windows of time for home purchases are a continued reality for you, then seeking out the support and expertise of a reality team will be key to your success.