Purchasing property has often been hailed as the best investment, but realty has been grim for some BC homeowners over the past few years.
A new report from Point2Homes, a publication focused on real estate news and trends, suggests that some BC municipalities saw significant investment losses.
For example, folks who purchased a home in Kelowna saw home values drop by nearly $36,000 between 2022 and 2023. Thankfully, that wasn’t the trend for all BC municipalities, and some homeowners did see property values increase — quite significantly, in some cases.
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Vancouver, unsurprisingly, saw a significant increase in single-family home values between 2022 and 2023. The net change was an increase of $208,858. Surrey saw an increase of $91,000, Burnaby an increase of $126,300, and Richmond a jump of $133,200.
The net home price for Vancouver last year was $2,535,257, the most expensive of all BC municipalities. The cheapest spot in BC when looking at net home prices was Kamloops. In 2023, the net home price in Kamloops was $650,000.
Single-family homeowners in Victoria weren’t so lucky, seeing a drop of $850.
It was a similar story for condos. Kelowna saw a net downward change of $28,250, and Victoria condos dropped by $23,200, a much more significant drop than the drop in values of single-family homes.
Point2Homes says that Kelowna homeowners who purchased property in late 2022 saw a $98 loss every day for the past year, marking “the biggest loss in BC and the third biggest loss in the country.”
Looking at Metro Vancouver, the Real Estate Board of Greater Vancouver (REBGV) says January kicked the year off with a strong start for sales, with $1,427 in residential property sales, a 38.5% increase year-over-year.
Benchmark prices for all properties in Metro Vancouver ($1,161,300) increased last month by 4.2% compared to January 2023.
“It’s hard to believe that January sales figures came in so strong after such a quiet December, which saw many buyers and sellers delaying major decisions. If sellers don’t step off the sidelines soon, the competition among buyers could tilt the market back into sellers’ territory as the available inventory struggles to keep pace with demand,” said Andrew Lis, the REBGV director of economics and data analytics, in a statement.
REBGV’s jurisdiction covers Vancouver, Burnaby, New Westminster, Richmond, Pitt Meadows, Sunshine Coast, Whistler, and all of the Tri-Cities and North Shore. Other areas such as Surrey, Langley, Delta, and White Rock are part of the Fraser Valley Real Estate Board.
The benchmark price for all homes within REBGV jurisdiction is currently hovering at $1.161 million, representing a 4.2% increase from January 2023 and a 0.6% drop from December 2023.
Long story short, if you can afford a down payment on a property in Metro Vancouver, there’s a good chance you’ll recoup your investment. However, some spots in the interior and on the island are less sure bets, depending on how much money you hope to make in the market.
If you’re looking for alternatives, many Canadians are heading to Mexico for cheaper property, a change of scenery, and a tad more sunshine.
With files from Kenneth Chan
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