A real estate tool for selling
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Today on BCLN, a story was written by our Lower Mainland reporter, Jeff Nagel, noting part of the Whalley section of Surrey will be declared the second 'downtown' area in Metro Vancouver.
As a 23-year (and counting) resident of Surrey, I don't like this one bit.
With Surrey slated to become the most populous urban centre in the province in the next 20 years, growth is going to happen, but a re-branding of the 'core' of the city isn't necessary.
More than anything, this designation will serve as yet another reason for Surrey's bloated housing market to gain another ridge of unneeded fat.
I have lived in Whalley for 18 months, and in that time, I have seen the price of real estate skyrocket to untenable heights.
Currently, one apartment building, the Infinity – a 36-storey, concrete building finished earlier this year – has 58 listings for sale, ranging from $239,000 (555 sq. ft. unit) to $579,900 (1,068 sq. ft.).
For the lower end of the scale, you can get a unit twice the size in an older building not on a main street, with more amenities, and isn't going to have several more towers constructed in your field of view.
At the high end ($600,000), a nice, new detached home just about anywhere in the city is attainable, at likely thrice the size, plus a yard. Granted, you won't get the 35th floor views of the aforementioned suite, but the extra space is worth the trade off.
What I suspect is going on in Whalley right now has something to do with real estate speculators trying to make a quick buck in a market that is slowing down.
The building I live in has 79 units, 10 for sale, including the one next to mine – for $40,000 more than it cost 18 months ago – in a building with no amenities on the main drag.
We just had an offer accepted on an apartment in 'downtown' Whalley, a one bedroom, two bathroom unit in a concrete building, and my fiancee's mother (who lives in PEI) asked to see photos of the place.
My future mother-in-law was blown away that we'd spend that much on an apartment, or that we'd even be able to buy an apartment, something uncommon in Summerside.
But with the average house price in the City of Parks crossing the half-million threshold, a split-level is out of range.
Also, despite the fact the number of listings is up (24 per cent more) and sales are down (-14 per cent), the British Columbia Real Estate Association is expecting prices to rise nine per cent throughout the province this year.
"More balance between demand and supply means less upward pressure on home prices," said Cameron Muir, chief economist for the group.
"It also reduces the chance of multiple bids on the same home, giving homebuyers more time to investigate properties thoroughly before purchasing."
Interesting spin, but with 58 condos for sale in just one building in Surrey, I have a feeling the bottom may be loosening on the Fraser Valley's real estate market.
But, with Surrey now having a 'downtown,' marketers have another tool to push their properties.
