UPDATE: Here is a graph of what happened with North Vancouver Condos since I wrote this article in 2016. No, I am not looking for koodos or acting Bragger-lee. Just displaying info here that helps you understand the market and what moves them. In short, population growth, jobs and infrastructure:
It was a quiet afternoon this weekend touring around with one of my buyers on a quiet Sunday evening in North Vancouver shopping for condos. Before this weekend, we had stood in front a Vancouver west end street as serene and inviting as you would find anywhere, and yet there was no environment in the world more likely to offer an instant beating/lynching/death (not necessarily in that order) to the average buyer.
We had gone to Vancouver’s west end and got beaten, out competed, and may as well have been lynched with the 6 competing offers that had come in just 5 hours of a 1 bedroom condo being listed. This was the unfolding story of yet another buyer getting the Vancouver blues. He simply could not go up to the price point he was qualified for by his bank. This would play out as the 3rd multiple offer we had lost in 3 weeks.
If you think this is an absurd market, I have to agree. It’s really tough going out there with your buyer that has worked hard all of his life, acquired a strong post graduate education, was able to acquire a strong position at his work throughout the years, and still cannot afford a basic one bedroom condo. I should also mention that my buyer was also getting help from his parents. Even then the odds of him getting into the market is very slim.
I was just at The 2016 World Outlook Investor conference over the weekend and an analogy to today’s market came in from a speaker in the form of an analogy:
“It is like taking a sleeping pill and a laxative at the same time. Good luck.”
However, if you are someone who wants to live in Vancouver, I really recommend that you keep on trying. If you find a sleepy real estate agent (I find them all the time, but you have to be quick, witty and have 7 lives), you may be able to submit your offer before anyone else does.
However, if you are looking for VALUE and you are flexible in your final location, then read on…
Today I am writing about a great place, almost a darling amongst Greater Vancouver cities which still makes sense. Just on the north side to our downtown, linked by a daily sea-bus and two lovely bridges (I say lovely because while you are stuck in traffic you can admire the great beauty Vancouver has to offer), is a little sleepy town called North Vancouver – although not sleepy for long.
They say a picture is worth a thousand words. Then well, I say a graph is worth a million dollars:
That’s the glory of scrutiny and careful diligence, as far as I am concerned. I don’t want to know what the “Vancouver market” is doing or what people are talking about or what the news has to say. I can’t think of anything that excites a greater sense of childlike wonder than to be in a looking at data and seeing where I can find value in a place where there is seemingly no hope at all.
The North Vancouver condo market has only moved 1.4% when:
1) our Canadian Dollar has dropped by 35%
2) condos in surrounding cities have increased 20%+/-
But what’s so special about the future of North Vancouver?
Values grow where people go.
I became ever more enthused about North Vancouver because I found out that there is huge infrastructure going in. In fact $400 Million is going into building a waterfront neighbourhood filled with shops, restaurants and entertainment. Translation: Lifestyle. And where there is lifestyle there is people that want to move in – and values grow.
This makes a great darling of an investment where you can still find $300,000 two bedroom condos in North Vancouver that rent for $1,700 in the Lonsdale region, a great selection of 1 bedroom condos and still the odd value in North Vancouver houses.
Interested? Get in touch and let’s get started!
Call me at 604-767-3703.