A week ago the Globe and Mail reported that Greater Vancouver house prices jump 20 per cent to average $1.47 million.
This is just one of a number of aticles on the much debated issue of whether offshore buyers are causing the price of houses to go up in Vancouver and other areas of the Lower Mainland. Many communities are experiencing single family home price increases such as South Surrey and Whtie Rock.
Darcy McLeod, the president of the Real Estate Board of Greater Vancouver was quoted as saying that concerns about offshore buyers are overstated because foreign purchasers focus on higher end detached properties over $3 million. Now, while that is true, it's only part of the picture. The Globe and Mail also report the day before that article came out that there were 570 homes sold over $3 million in the first seven months of the year, up close to 80%. So, to think that housing prices are not being driven up by this activity is to think that those sellers just vaporize ... oh, I don't know ... move to Toronto or Montreal, my home town. No they don't. Most have lived a lifetime in Vancouver, and this is their home and where they feel comfortable. They will move a little ways to capitalize on their winfall, but they are likely not going far.
So, I will tell you what many of them are doing. They are being smart, taking their money and running ... and running where do you ask. They are running south and buying White Rock and South Surrey homes, a beautiful seaside community. Smart move I'd say.