“The Vancouver market is just so overheated at this point that anybody that calls themselves a professional investor is sitting on the bench at this point, relaxing—basically, any place for sale either in Vancouver or Victoria, if it’s even remotely priced appropriately— you’re looking at multiple offers sold within a day,” Hans McFarlane, a Vancouver-based investor, told Canadian Real Estate Wealth. “The offers are coming in above asking price with no conditions, and that’s the biggest thing: it’s coming in above asking price with no conditions at all.”
The average price in Vancouver increased 25.6% year-over to $1.1 million in February of this year.
Investors who have already purchased are enjoying lucrative gains. But some, according to McFarlane, are choosing to sell off those properties.
“In fact I know a few really seasoned investors who actually diversify, divesting their portfolio,” McFarlane said. “They’re selling off their stuff because sometimes they just kind of sell … they’re taking their profit and running.”
Vancouver’s red-hot housing market is well document, but it’s impacting housing markets outside the city centre as well.
The average price in British Columbia increased 21.9% year-over-year in February to $779,419. That is $276,362 higher than the national average.
“Nanaimo saw a sale on Wednesday, which was its highest sale ever at $2.4 million or so; the realtors are obviously pretty excited about that. That’s one of the market’s I’m heavily invested in,” McFarlane said. With the property purchase tax and the commissions, there’s no way you’re going to make any money (as an investor).”
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This market is so hot, one veteran says the real investors are choosing to sit on the side-lines.