vancouver housing prices

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Vancouver’s Affordability Crunch is Spreading to Smaller Municipalities

by Bevony on 5 January 2022 Comments Off on Vancouver’s Affordability Crunch is Spreading to Smaller Municipalities

2022 assessed value notices are out! And they are showing a 40% jump or more for homes in some of British Columbia’s suburbs. The new data shows the increase up across the province. Some smaller suburbs and communities are hit the hardest. 

More affordable parts of Fraser Valley are seeing major increases. In Chilliwack, the average increase is 40% over the past year. In Langley we are seeing increases of 38% while in Abbotsford we are seeing increases of 39%. 

When you look at the cost of a single family home in Vancouver, which was already sky high, we are seeing an increase of 16%. This means an approximate average of $2 million. These numbers show how the affordability problem in Vancouver is spreading to other towns. 

Challenges Ahead 

There may be some serious challenges ahead as these price increases will mean locals can’t buy. Locals won’t be able to purchase as the local income has not increased to these sizable property value increases. 

Homeowners will welcome the increases whether they plan to sell or not. But this really is another blow to anybody hoping to get into the housing market. It will also be a major worry for renters as they will be affected too. If you have a leasehold property when the assessed value goes up your annual costs, paid over to the government will increase too. 

Retired individuals with recreational properties may not be able to keep their properties since they are on a fixed income. Others on fixed incomes may find they are unable to afford to keep their properties as well. 

What’s Needed to Address the Affordability Crunch?

When the assessment is done, there is no differentiation between freehold properties and leasehold properties. To address this affordability crunch that seems to be growing there are a number of factors that come into play. These include demand, supply and financing measures.  

There is also the need to look at emerging housing disruptors such as Airbnb and people who own multiple homes. The marketplace is under particular pressure due to the idea of housing for investment rather than for use as a home. And this was before the pandemic hit. 

B.C 2022 Assessment Notices

B.C Assessment is the authority within the province that determines how homes across the province are valued. This is done yearly for official records as well as for tax purposes. The current 2022 assessment notices reflect a property’s market value as at July 1st 2021. 

B.C Assessment notes the market is still very active, and property owners can only expect to see more of these higher assessments in 2022. Over the past two years, a heightened demand for homes has caused an increase in property values in both traditional hot spots and smaller towns. Across the Lower Mainland area, gains average between 10% and 30%. There were increases of more than 30% in Delta, Coquitlam and Surrey. In Chilliwack, the average worth of single-family properties is $877,000, and in Hope $620,000 up by 45%. 

Over in the City of Vancouver, we see where condos have seen increases on the lower end of the spectrum with single digit increases. 

Total overall assessments for the Lower Mainland area have increased to $1.75 trillion in 2022, coming from $1.46 trillion in 2021. Over $23.7 billion updated assessments are coming from new construction, property rezoning and subdivisions. 

According to the B.C Real Estate Association, 2021 December home sales hit a new high. The average house price is now almost at 1 million dollars, up by 22.1% from November 2020 prices. 

Vancouver Island Increases

On Vancouver Island the data is similar with Tofino seeing increases of 42% and Port Alberni up to 47%. The increased demand in homes in smaller cities and rural areas also drives the increase in assessments. 

Parksville, Duncan, North Cowichan, the Gulf Islands and Sooke, to name a few, saw 30% increases. 

The overall increase for Vancouver Island, according to the B.C Assessment, is $343 billion for 2022, coming from $269 billion in 2021. The biggest increase the region saw was in Peachland, with an increase of 39% in assessments of single family properties from 2021 to 2022. 

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BevonyVancouver’s Affordability Crunch is Spreading to Smaller Municipalities

Townhome Availability in Vancouver

by Bevony on 10 June 2020 Comments Off on Townhome Availability in Vancouver
Townhome Availability in Vancouver

Vancouver home prices have seen a modest growth of 1% for 2020. This city still stands as the most expensive place to live in Canada. With the current health crisis, the supply of real estate has been further depressed. Some weary sellers are pulling their listings from the market and as such prices can get even higher. What will you find for sale in Vancouver? 

Types of Real Estate Available for Sale

You will find many a condo on sale in Vancouver. If you are looking for a single-family home, you will be able to find your fair share of those as well. That is of course if you can afford it. But if you are searching for a townhome, you may be up for an uphill battle. There are multiple reasons for this. 

In Vancouver, we can see clearly, that there is a difference between what people want and what they can afford when it comes to real estate. Vancouver has not built a lot of townhomes historically and this affects the market in more than one way. 

Within the past few years, there has been new zoning in Marpole for example that just allowed the building of townhomes. Other than availability, there is also the price factor. Buying a single-family home is too expensive for most families and buying a small condo won’t provide adequate space. 

Families may have some hope in the future for purchasing two and three-bedroom townhomes princesses less than 2 million and ranging in size from 631 to 1840 square feet. The last decade shows that a lot of families have left the city of Vancouver due to the cost of real estate and their inability to find appropriate housing at affordable costs.  This solution will provide families with the opportunity to get a home that is bigger than a condo but still more affordable than the typical single-family offerings in the Vancouver area. 

Change is the new constant in the current real estate market. And all stakeholders are feeling this currently. We are all weathering the storm and hoping for the best outcome, always ensuring that safety is the priority. Some of you must still brave the Vancouver housing marketing during this crisis. Here at SilverBeam Homes, we can help.  If you are wondering “will Vancouver house prices ever drop“? Maybe it is time for you to look at alternatives.

Get in touch with us today, and let us know what your needs are. We can help you navigate these changes both safely and effectively. 

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BevonyTownhome Availability in Vancouver

Surrey Housing Market Looking Stable

by Bevony on 11 March 2020 Comments Off on Surrey Housing Market Looking Stable

With a lack of real estate investors in Surrey, there has now come to be a more stable housing market. Many houses in Metro Vancouver’s high-status neighborhoods are now looking more affordable than they have been in years.

Housing Market

With Surrey not on the radar of wealthy domestic and offshore investors, the prices have benefited from this. The city continues to grow rapidly though. The majority of the market is made up of new immigrant buyers. This is followed by native-born immigrants simply searching for a place to call home. In contrast, other high-end neighborhoods have seen a lot of instability since 2017.

The statistics show that house prices in posh neighborhoods dropped approximately 1/5th in one year. This was also true for a variety of neighborhoods in Richmond. In contrast, the housing prices in Surrey remained very stable. This is especially true for the Northern Section where homes often sell for lower than $1 million.

Other Stable Neighborhoods

When prices fell up to 25% this year, luxury homes in some West Vancouver neighborhoods fell. These included Upper Caulfield and Chartwell prices in other North Surrey neighborhoods. The prices only dropped between 1 and 5 percent. Surrey wasn’t the only neighborhood to escape the ridiculous price drops. Other neighborhoods that remained stable include:

  • North Delta’s Kennedy West
  • The District of Langley’s Brookswood
  • Fort Langley
  • New Westminster’s Queensborough
  • Brow of the Hill
  • Lynn Valley
  • Seymour Heights

North Surrey Housing Market

North Surrey stood out among everybody thanks to the fact that their stability in prices was seen all across the board.  The affordability of the area is one of the biggest factors. This is a factor that is good for both buyers and sellers. With a population larger than half a million, the area is one of Canada’s fastest-growing municipalities. Each year the area expands by approximately 2%.

The Surrey market is largely made up of locals, but it is not the same for the West Vancouver market. While South Asian immigrants also find the affordability of houses here desirable this is not driving up prices as they don’t want a 20 million dollar home. Figures from Census Canada show that the residents of North Surrey that have roots in India are between 40 and 60%. This is especially true in Kennedy, Fleetwood, and Newton.

The area is attractive to immigrants from Pakistan and India because of the cultural diversity of the area. The area allows them a certain amount of familiarity and satisfies the needs of their culture. They will find temples, mosques, and gurdwaras. They will also be more likely to have family in these areas as well. Coming here and finding real estate for sale at an affordable price means they can lay down stakes sooner and integrate into society faster and easier. Houses can be purchased with smaller down payments which is great for first-time homeowners who often are left vulnerable to the financial stress test of the government to determine their eligibility for a mortgage.

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BevonySurrey Housing Market Looking Stable

Vancouver House and Condo Price Trends

by Bevony on 24 April 2019 Comments Off on Vancouver House and Condo Price Trends

Are you wondering where house and condo prices in Vancouver are heading? If you are looking to find a new home, then you will be happy to know that these prices are mostly going down. If you are looking to sell your home then this may not be the best news for you. the truth is that house prices have doubled in the last 10 years which equates to price increases of an average of 7% per year while our incomes have only increased on average around 1.5%.

House prices dropped in the summer of 2016 after the foreign buyer tax was introduced but the prices later recovered. The drop back then was a shallow drop and when you think of you, you really wonder just how volatile the market is. The truth is that prices in the Metro Vancouver area have already dropped by 12% which works out to approximately $192,000. While this drop may seem very significant just by looking at the numbers the truth of the matter is that this drop still leaves house prices out of reach for a lot of residents of Vancouver. Residents of the Westside and West Vancouver have been the hardest hit but there have been significant declines in East Vancouver and Richmond as well.

What About Condo Prices?

Within the same timeframe of 10 years, there has been a decline in the prices of Condos as well. This downturn had continued on the downward trend until last summer. While there was a decline in Condo prices it was not as notable as the decline in prices of houses.

What does this Mean for the Market?

With a market like this, buyers have a better chance of getting more house for their money. Sellers, on the other hand, will have to lower their prices to remain competitive and to increase their chances of closing a sale. First-time buyers who have been saving up for buying a home will be happy about the current market statistics but those who don’t have a sizeable amount saved up could still be second guessing buying a home at these prices.

At the end of the day, it all comes down to how much money you make and how much you have saved to help get your home. There are many people who remain in a good position no matter which way the market goes and there are those can just hope and pray that the market continues to show a decline in the price of homes.

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BevonyVancouver House and Condo Price Trends