Home ownership becoming out of reach in B.C. suburbs that were once affordable
Glenda Luymes
The Vancouver Sun
With B.C. home listings at historic lows and prices climbing even higher, the quest for affordable housing is taking some buyers beyond the ‘burbs.
Fraser Valley realtors and brothers Merrick and Michele Matteazzi of Movement Real Estate Group. Rising mortgage rates next year could lead to prices “levelling off and a slow build up of inventory,” said Michele Matteazzi. Photo by Submitted photo – Richelle Kend /PNG
For years, B.C. home buyers seeking more for their money have looked east.
“People move from Vancouver to Surrey. Surrey to Abbotsford. Abbotsford to Chilliwack,” explained Surrey realtor Rajiv Bhagirath.
But with the listing of B.C. homes for sale hitting historic lows and prices climbing even higher, the quest for affordable housing is taking some buyers beyond the ‘burbs, while others are deciding to wait it out.
Chilliwack realtor Serena Laye said 30 per cent of her sales the last two months have been people leaving Chilliwack for places like Castlegar, Terrace and 100 Mile House.
“Because of that influx of people from Vancouver, you’re seeing sellers in Chilliwack looking north,” she said.
Those who sell high, but want to remain in the community, must also buy high.
As a result, some sellers have chosen to delay listing their homes until more properties come on the market, said Abbotsford realtor Michele Matteazzi.
He recently had a client who hoped to sell and buy back in the same neighbourhood.
“He could have sold in a heartbeat, but we advised him to wait because there’s nothing available for sale,” he said.
Data from 10 real estate boards across the province paints a picture of low supply, high demand and rising prices.
On Wednesday, the B.C. Real Estate Association reported 19,214 active listings across the province in October — a nearly 40 per cent drop from October 2020 and a record low.
A total of 9,593 sales were recorded by the Multiple Listing Service, a 13.7 per cent decrease from last October, while the average residential price was $964,777, an 18.9 per cent increase.
The steepest decrease in homes for sale was in the Fraser Valley, where there were 53 per cent fewer homes listed this October compared to the same time last year. Kamloops saw a 49 per cent drop, followed by Vancouver at 47 per cent and Victoria at 55 per cent.
In Greater Vancouver, where the average home price is highest, the sales-to-active-listings ratio reached nearly 42 sales for every 100 listings.
Other regions have an even tighter supply: Chilliwack’s ratio hit 84.5 in October, while Victoria was just under 94 per cent and the Fraser Valley was 69 per cent.
Analysts say a sales-to-active-listings ratio of 20 or higher indicates a seller’s market, where there are more people looking for a home than homes available.
“The story across the province continues to be the record low number of listings,” said Brendon Ogmundson, chief economist for the BCREA, which represents about 23,000 realtors across the province.
“Rising mortgage rates should start to temper sales activity next year, but even with a moderation in demand it will take quite some time for the inventory of homes to return to a healthy level.”
Matteazzi said the impacts of the pandemic are still being felt on the Fraser Valley real estate market as people who found themselves working from home wanted more space as commuting became less of a factor. Some people who sold at the start of COVID, believing the housing market would crash and allow them to buy back in for less, were priced out as prices rose.
“It’s always hard to time the market,” he said. “If it’s your principal residence, buy and hold. Never play with your principal residence.”
The realtor predicted rising mortgage rates next year won’t lead to a crash, but rather “a levelling off and a slow build up of inventory.”
With files by Cheryl Chan
gluymes@postmedia.com
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