Real estate in the Fraser Valley is on a huge rebound. According to statistics from October just released by The Fraser Valley Real Estate Board, sales of all property types are up 18.5 per cent compared to sales in September 2019, and a 37.8 per cent increase compared to the sales in October of last year.
Part of the reason is affordability for first time home buyers and those downsizing from pricier spots closer to Vancouver. But for investors, especially, the math just works out better.
Rents are comparable with an average one-bedroom apartment in the Metro region renting for $1,370, while the BC average is $1,193 per month, according to a Canada Mortgage and Housing Corporation rental report. Of course many of these homes rent for much higher.
According to The Fraser Valley Real Estate Board, the benchmark home price for a single family home in the Fraser Valley is $952,600, a townhouse $516,000 and a condo $405,100. At these prices, it’s still possible to turn a monthly profit with rental homes.
In Vancouver, that’s becoming a taller order. Unless you bought the property years ago, it’s tough with current prices to cover your mortgage, let alone make money every month. Even though prices in Metro Vancouver have dropped, the benchmark for a single family home is still $1,410,500 according to the Real Estate Board of Greater Vancouver, which means you’d have to charge over $5,000 per month in rent to make your mortgage payment.
It’s a trend I’ve seen with real estate projects we’ve worked on at Jam PR - with messaging around investment and market rental rates really hitting home and moving properties. The Fraser Valley also doesn’t have the same restrictions around short term rentals and vacant homes so there are so many possible ways to make money off your property. The market is also trending up, whereas home prices in Vancouver have fallen over recent months.
A few months ago, we put our family home in Chilliwack up on Airbnb and have been amazed by all the different people from around the world who have been coming to stay. We’ve hosted a family from New Zealand and another from Germany. People come from Seattle, from the BC interior and even from nearby spots like Surrey and Burnaby.
In addition to being relatively affordable, the Fraser Valley has a unique draw for those who love the outdoors. With new development and investment into the area, it’s posed to get even more popular in the months and years to come.
Ada Slivinski is the Founder & Principal of Jam PR, a boutique agency focused on helping small businesses get big exposure. You can reach her at [email protected]
SWIM ON:
- In January, Ada Slivinski commented on forecasts that Toronto was better poised to weather the real estate storm than Vancouver.
- Mark Milke on how to make BC more affordable.
- Bob Price reported on the surging real estate market in Kitimat.
