“I’ve seen a lot of local stories lately [about] people who were cashing in their Vancouver homes; if you sell a condo in Vancouver that you bought a while ago, you’re getting outside of half a million dollars for a condo,” Hans McFarlane, a Vancouver-based investor, told REP. “And then you come over to Nanaimo, and that buys you quite a nice home. So if you’re living in a condo in Vancouver, there really isn’t a way [for] you to step up and get a housing market unless you move out of the city.”
The average price in Vancouver increased 25.6% year-over to $1.1 million in February of this year.
Investors who have already purchased are enjoying lucrative gains. But some, according to McFarlane, are choosing to sell off those properties.
Others are forced outside the city if they want anything larger than a condo.
“So they’re basically buying homes in Nanaimo and then looking to commute on the ferry,” McFarlane said. “It’s a pretty serious commitment, but with people working from home these days, it’s certainly doable.”
McFarlane says the climbing prices are also forcing investors to look outside the city centre.
“The Vancouver market is just so overheated at this point that anybody that calls themselves a professional investor is sitting on the bench at this point, relaxing—basically, any place for sale either in Vancouver or Victoria, if it’s even remotely priced appropriately— you’re looking at multiple offers sold within a day,” he recently told REP sister publication, Canadian Real Estate Wealth. “The offers are coming in above asking price with no conditions, and that’s the biggest thing: it’s coming in above asking price with no conditions at all.”
Sky-high Vancouver prices are forcing buyers to look outside the city – and this is driving up prices in formerly affordable markets, according to one investor.