Significant numbers of homeowners in Vancouver are selling their high-valued homes and moving to less inflamed segments of the local market, according to the top official of a realtors’ association.
Vancouver Island Real Estate Board president-elect Janice Stromar said that while conclusive data has yet to be collected, many Vancouverites are now taking advantage of the urban market’s in-demand status by getting a profit on their properties to buy cheaper homes at the city’s suburbs or at Vancouver Island.
“I think it’s a little early to call it a trend but I like to say it’s an ‘option’ for people now. They can cash out on their really expensive homes in Vancouver, come here, buy a way nicer house for a third of the money and use some of that money to commute,” Stromar told Yahoo! Canada Finance
Stromar observed that this has the side effect to using up the supply of available homes faster than they can be restocked. Figures released by research firm SnapStats revealed that new listings were outstripped by end-of-month transaction volumes of downtown Vancouver properties worth below $600,000 and attached properties in east Vancouver worth $700,000.
Stromar noted that most of Vancouver Island’s newcomers hail from the main urban area, and are looking for “in-law suites” that can be used for income rental.
“The meat of our market is $200,000 to $500,000… once you start getting into that, people want houses as mortgage helpers,” she explained.
Other buyers are interested in properties that would allow them to take the daily commute to and from work in downtown Vancouver instead of paying for gas and parking, allowing them to save more in the long-term.
“If you have a job that requires you only being in the office once or twice a week, then I think it’s a really viable option,” Stromar said. “When you factor in what you’re paying for a mortgage here and what you’re paying for a mortgage there it makes it more reasonable.”