Fresh news designates that areas out of Metro Vancouver, which were considered as reasonable, are fast becoming less reasonable this year than it was last year. Prospective buyers searching for homes outside of Vancouver are possibly running out of luck as residential areas remote of Vancouver are also becoming expensive.
Last year, home prices in Vancouver amplified considerably, leaving out making buyers especially first-timer buyers out of the market. This severe increase, provoked policy makers and the provincial government to take actions.
A 15% tax was introduced on foreign buyers whom market spectators claimed were responsible for the rising prices coupled with the introduction of new mortgage regulations.
Conversely, even though the affordability rat in Vancouver dropped by 3%, there was a further decline in affordability in areas that were once considered as reasonable. Affordability in North Vancouver dropped by 38%, Delta 31%, Langley Township 29%, Mission 24%, Abbotsford and Maple Ridge 23% and in Sidney 17%.Home affordability was only sustained in Richmond and Whiterock.
According to Ryan McKinley, senior mortgage development manager at Vancity, noted that in the past buyers searched for homes in outlying areas of Vancouver. In recent times, things are changing with very few reasonably priced residential areas existing with most of them facing high home prices.
With many buyers moving away for the luxurious Vancouver market, more and more people are in need of cheap homes which are mostly found in these residential areas. This high demand for homes has put pressure in areas traditionally sought as substitute for Vancouver.
Vancity piloted a survey on the affordability rate of 30 districts across the Lower Mainland and Victoria in a span of one year, which came to a close on February 28, 2017. Affordability was measured by putting into consideration the average home price in the areas, the median household income and also adding up the gross debt service ratio (GDS) of each district.
From the outcomes, it was seen that Chilliwack was the cheapest district with the average home price at $174,500 and a GDS of 12.6% while Sooke recorded the second most affordable district with an average price of $219,000 and a GDS of 13.1%.
In regards to detached properties, Sooke was the most inexpensive, with an average price of $321,500 and a GDS of 19.2%, seconded by Mission at with $315,000 and 23.1% GDS.