You finally found a way to buy a single family, detached home in the wildly expensive Vancouver housing market. You have built equity over a few years, paid down your mortgage, watched your property appreciate, and now you are ready to move on up to an improved house. Maybe you are ready for a bigger house for a growing family, with more square feet and an ample yard. But, hold on to those dreams. This move may not be happening anytime soon. New reports indicate that the gap between starter homes and dream homes is increasing at an alarming rate.
Benjamin Tal, the Deputy Chief Economist of Canadian Imperial Bank of Commerce World Markets Inc., recently spoke at the International Housing and Home Warranty Conference in Vancouver. He is responsible for analyzing economic developments, with particular focus on the housing market. At this recent conference, Tal outlined the new real estate trend observed in Vancouver and other British Columbia cities, including Ottawa, Calgary, Edmonton and Toronto. Pricier properties are rising markedly faster than less expensive housing properties.
In the last four years, higher-end properties have increased in price by nearly eighteen percent, whereas homes in the starter market have increased by only two percent. This difference in growth and pricing is creating a reach that is too far to grasp for current homeowners looking to make the leap from their first home into a larger, more desirable property.
Regardless of how much your current property has appreciated, the option to move up is just not there for many homebuyers. With a lack of affordability already present and persistent in the Vancouver housing industry, this latest development has left buyers jaded and fed up with the local real estate market.
Because of the jarring price gap between the starter or mid-level homes and the high-end home, homebuyers are increasingly choosing to find another path to happy home ownership. Rather than hunt for a home that is more than likely out of their price range, homeowners are selecting to renovate the one they currently own. According to Tal, home renovation spending averaged close to 46 percent of total residential investment spending over the last five years. This is the largest share on record and the renovation trend appears to not be slowing down anytime soon. Renovating older properties is yet another way to increase the value of a property, yet without the hassle of moving or the agonizing undertaking of house hunting. Because in this market, looking for an affordable move up in the real estate world is akin to looking for a needle in a haystack.
With the latest news in Vancouver real estate, the phrase heard across the pond comes to mind. “Mind the Gap” is not just for Londoners riding the tube anymore. It also applies to homeowners looking to make a move up in the Vancouver housing market. Whether you are purchasing a fixer upper – or your dream home – trust Vancouver’s top movers to safely and affordably relocate. Whether you are in need of a long distance moving estimate or local Vancouver movers quote visit our website for an instant moving estimate.