Detached houses are HOT right now as people are moving out of Vancouver in search of more space.
James and Denny weigh in on the very low supply of single-family homes available and the increasing number of buyers looking to move into these types of properties.
This episode will focus on bidding wars with multiple offers, the overwhelming number of people trying to attend showings, the importance of setting proper price points for listings, and how to make a competitive offer. The guys also share the interesting experiences they have had with detached houses in the cities seeing the most activity right now: Pitt Meadows, Maple Ridge, Langley, and Abbotsford.
Notes from the episode:
More buyers are entering the market due to low-interest rates and the desire for more space. It can be difficult to navigate through these price increases to find the best value in the top locations, so James and Denny have broken down some of their favourite locations for you.
Where are we Seeing the Most Activity?
Many people are moving further East into Langley, Abbotsford, Maple Ridge, and Pitt Meadows for more space and affordability. Previously, these cities were seen as too far out for most buyers. However, they have quickly become the new hot spots due to lower prices and larger property sizes.
Maple Ridge (including some areas of Pitt Meadows):
– Growing communities with mountains, lakes, breweries, and great shopping
– West Maple Ridge has a lot of amenities, parks, and is closer to the city.
– East Maple Ridge has bigger houses and newer construction selling in the $1.3 million to $1.5 million range as of early 2021.
– Demographic: a lot of young families looking for more space
– The communities seeing high activity are Brookswood, Cloverdale, Walnut Grove, Murrayville, and Willoughby Heights
– There has been an approximate 15% price increase within the last 3 months in these areas with houses selling for $1.2 million to $1.4 million
– Access: Langley is close to the highway and is very accessible to those commuting for work
– A lot of value in livable, entry-level detached homes in this area
– Due to the high cost of materials, it may be better to buy a built home and sell in 5 years than buy an empty lot/tear down and build for investment purposes.
– Listings under $1.5 million is getting a lot of interest right now
– Greatest value found in properties worth over $2 million
What to Expect When Purchasing Detached Homes:
It is hard to predict exactly what will happen this year in the real estate market. In the last two months, we have already seen a 15% increase in single-family home prices. It is important to note that this does not increase on a gradual scale, so it will not necessarily continue growing at the same rate. Nevertheless, we do believe that it will continue to rise.
With the value of detached homes increasing seemingly overnight as more houses sell, it can be difficult to know exactly what your offer should be. Take a look at the Real Estate Board of Greater Vancouver February 2021 stats for more information on recent single-family home prices.
The Takeaway Message:
It may be challenging to find value in the prices of detached homes right now, but they will most likely seem like a deal when you look back at these numbers in a few months’ time! Unless there is a big influx of houses going on sale, which is quite unlikely at this time, the market will continue to become more competitive.
A cautious suggestion for those thinking of entering the real estate market: even if you are stretching yourself and spending more than what you had originally planned, it is better to do that now than wait 6 months when real estate value has increased.
Do you have questions regarding upsizing into a larger home, the appropriate price of a listing, and the growing appeal of moving out of the city and into the surrounding areas? We would love to hear from you – contact us and we can help you with some of the specifics.