Paige is a wonderful realtor! She was very patient with me in my buying process - buying your first condo can be a very stressful time but Paige wasn’t pushy & was always quick to point out things I wouldn’t know to look for. Very trustworthy! Thank you for making my first time buying experience a good one!
Nancy Moro
BC REAL ESTATE DEMAND FUELED BY DIVERSE CONSUMER APPEAL
CHECK OUT THE ARTICLE BELOW. INTERESTING HOW BC ATTRACTS SUCH A DIVERSE POPULATION. THE KELOWNA REAL ESTATE MARKET IS USUALLY AFFECTED BY WHAT THE VANCOUVER MARKET DOES. I WONDER HOW THE OLYMPICS WILL BOOST OUR HOUSING MARKET IN THE OKANAGAN?
BC REAL ESTATE DEMAND FUELED BY DIVERSE CONSUMER APPEAL
VANCOUVER AT THE FOREFRONT OF EMERGING TRENDS OF
SINGLE WOMEN, MOVE-UP BUYERS AND RETIREES
According to national and provincial industry forecasts, the upward trajectory of the BC real estate market is expected to continue through 2010 and that has some consumers wondering why. The underlying reasons include a more diverse consumer appeal than seen in other Canadian markets, says a national real estate leader. John Geha, president of Coldwell Banker Canada says the BC market, particularly Vancouver and Victoria, will be fuelled by demand from a unique combination of buyer groups. “Homebuyers all across Canada are moving to take advantage of historically low mortgage rates and pent up demand from the recent downtown,” explains Geha, “but BC is also attracting interest from niche markets, which will help to fuel growth in 2010.”
According to Geha, the province enjoys a number of advantages that will support an elevated demand for homes. “BC is at the forefront of many emerging trends in real estate,” Geha confirms, “including single women, move-up buyers and the growing retiree market.”
“Vancouver is already the strongest seller’s market in the province,” says Geha “with the Canadian Real Estate Association reporting an incredible 124% year-over-year sales increase in September. We’ve seen renewed consumer confidence deliver sales levels not seen in years. This kind of growth cannot be achieved solely by first time buyers entering the market to take advantage of low interest rates.”
As an example of move-up buyer demand, Geha points to the Coldwell Banker Home Price Comparison Index (HPCI), which identified Vancouver as the Canadian leader and one of North America’s top ten most expensive markets for the type of ‘aspirational’ home favoured by corporate transferees and move-up buyers. “These are the kind of homes that appeal to individuals in their prime home-buying years,” Geha explains.
According the Coldwell Banker HPCI, Vancouver’s price for the studied 4-bedroom, 2200 sq. ft. home ranked as the tenth most expensive in North America at $1.26 million US ($1,174,241 CDN). The Vancouver price was well behind front-runner La Jolla, California and its neighbouring community Beverly Hills, both coming in at around the $2 million mark. Meanwhile, Burnaby and Victoria BC both had prices for the studied home just above the mid $650,000s US ($615,000 CDN). “Despite record-breaking prices, the demand is there not only for first time buyers, but for upscale homes too,” continues Geha, “The move-up buyer is a critical component of BC’s resurgent market.”
Geha also points to positive in-migration as another factor in the BC market’s projected growth in 2010. “BC has seen some of the strongest population growth in Canada, second only to Alberta,” he says. “But while Alberta’s population growth was fuelled by Oil Sands jobs that tend to be male-dominated, BC’s diverse economy is also attracting single women professionals, which is another emerging real estate growth market.”
According to Geha, Canada’s changing demographics and BC’s milder climate will also drive demand from retirees looking to relocate from other provinces in increasing numbers over the next few years. “Nearly 13 million Canadians were over 45 at the last census,” he says. “Almost a third of the population - 32% of all Canadians - was age 55 or older in 2007, and this percentage should rise to 38% by 2017. This growing demographic group will be experiencing lifestyle changes that will include changes in their real estate needs, both for their primary residence and for secondary homes in resort locations such as Whistler.”
The reference to Whistler also brings to mind the increased interest in BC which will result from extensive coverage of the 2010 Olympics. “The Olympics is the ‘wild card’ when it comes to BC real estate,” says Geha. “We know that it will have a big impact on people who are visiting BC for the event or seeing its unparalleled beauty and amazing attributes on television and online. The Olympics will deliver an estimated television audience of over 3 billion people with an additional half-billion per day from unaccredited media, such as bloggers,” says Geha. “This unprecedented media coverage is sure to spur more visitors and relocations to the area, which will in turn have a ‘snowball’ effect on the entire BC market. Just how much of an impact, we won’t know until it arrives.”
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