It used to be that homebuyers who can’t afford in Vancouver always had a good option.
That would be to drive out into the suburbs where homes are more affordable.
Now it looks like that alternative may be getting limited as well.
A report by Dexter Realty notes that the gap between home prices in Greater Vancouver and the Fraser Valley is getting narrower.
The Vancouver-based company stated that the difference was “once a canyon”.
“Today it is a creek,” wrote Kevin Skipworth, who is a partner, broker, and economist with Dexter Realty.
The report released Thursday (November 4) has the title “Suburban safety valves close as prices rise in step”.
It noted that the “suburban safety valves for those seeking more affordable homes have nearly vanished”.
The report related that in October 2019, the composite home price difference between Greater Vancouver and the Fraser Valley was $272,500.
That was three years ago.
“This October that had narrowed to less than $150,000,” the report stated.
To illustrate: “In the detached housing market, it now costs nearly the same to buy a house in North Burnaby ($1.74 million) or East Vancouver ($1.71 million) as in South Surrey-White Rock, where the October benchmark was $1.76 million. A house in Langley ($1.45 million) is higher than in New Westminster or Port Coquitlam and within $50,000 of a detached house in East Burnaby.”
The same trend is happening farther out in Chilliwack.
“The composite benchmark price in Chilliwack in October, at $800,000, was higher than in New Westminster ($749,200); and within $200,000 of most of the Tri-Cities market,” the report stated.