The high price of real estate in Vancouver is all that anyone can talk about says Eddie Yan, a Burnaby realtor. It’s a number that continues to climb, leaving many wondering how they’re ever going to afford a house. There are new buyers coming into this large city all the time, but not many people have pockets deep enough to handle the sky-high prices that the sellers are asking for.
Richmond is no different. It, too, is finding the prices are astronomically high, one that that can be calculated in a statistical rise in price of over 10% since this time last year. This is a large increase that many assumed would fall after the holiday season ended and everyone got back to business on a tight budget and trying to keep afloat. Instead, the prices in Richmond, along with all of the other segments in Vancouver, BC, continue to climb and climb.
The only other place in Canada with this problem is Toronto, ON, a city that – like Vancouver – is booming with jobs and people. As the population rises, sellers offer their homes at higher rates in order to meet the demand. There are plenty of people selling and plenty of people buying, but the price is the determining factor that lead some people to have to walk away from a house sale because they were outbid by someone else with deeper pockets.
Richmond is seeing many of the same problems as Toronto, with people coming to view the house and having to walk away empty handed when someone else makes a better offer on the home that they both were dreaming of. It is an unfortunate situation that cause many to rent long term instead of investing that same money into a home that will benefit them over time.
While the rest of Canada is watching the prices continue to rise, no one seems to be able to predict when they will fall again, making it a strangely additive spectator sport that is all over the news and online as people talk and gossip over when the rising streak will finally break.
Those looking at real estate in Richmond are finding that, if they aren’t beat out by competitors looking for the same home, the prices are simply unaffordable, so that even if they are able to consider buying the home, the fees and mortgage is enough to force a lot people into foreclosure if not worse. The prices make buying a house completely out of the question for many people that are on a tight budget that is right at the bottom of the market. As mentioned, someone will just cone out of left field and outbid you on a modest house that you finally can afford and put in an offer on.
If you are one of the desperate customers searching for somewhere to live within the boundaries of Richmond, you are hoping, odds are, for that rising streak to finally crack in the not too distant future. For the time being, your market will be very small and the houses you may find yourself looking at are much smaller than you think money should buy. The main question to think about right now is how much can you stretch your upper limit in order to put an offer on the house that won’t be rejected, or to look at a home that meets your standards better and is one that you can put an offer in with a good chance that it will be accepted.
As the days stretch on, more houses are going on the market and being snapped up by the top 1% that can afford to live in the homes that many cannot. This is causing a housing crisis for the rest of the citizens in Richmond and Vancouver in a general sense that are searching for a place to live until the real estate price drops down to a more reasonable price. The answer that everyone is searching for, however, is: when?