With the continued acceleration of the BC real estate and housing market, one has to ask themselves, “Is this a good time to buy?” and “Should I buy a house in 2016?”
In the hot BC Vancouver real estate market houses for sale are currently selling daily for hundreds of thousands of dollars, and in rare cases millions, over the asking price. In some situations, these sales have been creatively engineered to elicit bidding wars. But there are so many properties selling above asking price that bidding wars are almost ‘the norm’ in this intensively stimulated market.
Rising prices are also prevalent in London, UK, as well, and as a result, families are purchasing homes farther and farther away from the epicentre because they simply can’t afford the prices in London. Many of them rent small flats during the week while at work in London and only travel home on the weekends.
In a recent Real Estate Weekly article, Michael Geller asked himself, “Could this happen in Vancouver?” He seems to feel that it’s a distinct possibility!
As a Surrey Sutton real estate agent, I am working with buyers throughout Surrey and Langley who are moving further east and seeking out more affordable real estate. Buying a three or four bedroom house in Surrey or Langley is still a doable feat for young families and first-time buyers are finding much more bang for their buck with Langley townhouses or Surrey condos.
But, as Joannah Connolly has so succinctly written in her editorial Is it Foolish to Buy Vancouver Real Estate Right Now?:
“The truth is that nobody – from the man on the street, to me, to Michael Geller, to world-leading economists – nobody has any real idea which way it will go. If we did, we’d all be a lot richer than we are.”
Connolly offers three key considerations when buying real estate in any market, whether it’s one like Vancouver’s real estate market with all the hype or a fast-paced growing market like Surrey or Langley:
- When it comes to budgeting for buying a home in BC, do not overstretch yourself.
- Even if you have to borrow from friends or family, make a substantial down payment.
- Understand that it’s a long-term investment, but you’re not stuck living there forever.
She also suggests that no matter what price you purchase at to keep in mind that you’re investing in equity, and this undoubtedly beats renting, hands down.
If you have questions about this rapid paced real estate market or if you want a professional opinion whether it makes sense for you to buy a home in 2016, please contact Natasha Taylor of Sutton WestCoast Realty by phone/ text at 778-316-4290 or by email.