Recent press coverage touting the benefits of buying in New West have made it appealing for property-hungry urbanites, according to a local real estate agent.
Tracey Davies, from Park Georgia Realty, says she's seeing more and more buyers looking to make the move to the Royal City, where prices are comparatively lower than Vancouver.
"In the media we are getting a lot more exposure, you just hear about us more. Everything that's happening seems to be going in the right direction," says Davies. "People are seeing the value in New West"
The city's draws - facilities, schools, central location - are also luring people, she says.
"It's been pretty active," Davies says about the spring market, adding that sharply priced properties are moving with multiple offers.
"However, we also see the other end too, some sellers start out with what they think is fair, but that might not be the same as what the buyers think," she says.
She's also seen the impact foreign investors are having on sky-high prices.
"I have been dealing with overseas investors - people buying for investment or to live. People say they don't notice it, but I do notice it."
Donna Tays, from Remax Advantage Realty, says she's feeling the outside interest in New Westminster.
"Other agents are saying, 'Wow, New West is so hot. Richmond is slow, we're slow, and you're hot,'" she says. "Definitely the West End is really hot with builders. Builders are paying top price, as opposed to it used to be the owner/occupier was paying the top price. Now the builders are competing in multiple offers."
Detached homes in the $650,000 to $700,000 range are being "snapped" up with multiple offers and a quick turnover, Tays says. The only cooling point is in the condo market, Tays adds.
It's become very competitive in a "price-sensitive market," she says.
"We are seeing a lot of reductions and people jockeying positions."
Condos along the SkyTrain line are appealing to Vancouver buyers, though, she adds.
Record low interest rates are also feeding New West's real estate frenzy, but don't expect those rates to last, says mortgage broker Blair Goodman.
"Rates are currently at historical lows of all time, and based on the way the economy is going, we will see a rise in interest rates in the near future," he says.
But Goodman says even if interest rates jump, the demand will still exist. Rising interest rates will slow the market down, but it won't necessarily decrease the price because builders will always try to tap into the market needs, he says.
Also, there is always going to be a demand to be near Vancouver, he says.
"We live in a cul-desac, Vancouver is a culde-sac, if you think about it," Goodman says. "We are bordered by the Pacific Ocean, the North Shore mountains and the border, so you are always going to have a demand to be close to the city, and, as time goes on, people who can afford to be close to the city will pay, and people who can't afford will have to relocate out to the valley."
Goodman isn't surprised that the media is taking notice of the Royal City.
"New West, in my opinion, still is a deal," he says. "It's a bargain because the location is so close to Vancouver. You're on the right side of the bridge."
As for whether the local real estate bubble is set to burst, Goodman says he'd only be concerned if he had to sell his property right away. As a long-term investment, real estate is secure, he says.
"I bought my first house when I was 19. - If there's one thing guaranteed real estate will go up," Goodman says. "You're only in trouble if you have to sell. If you look at now and when you have to retire, the only thing that's guaranteed is that the value of your property will increase."
Meanwhile, a recent BMO Bank of Montreal survey found if variable mortgage rates were to rise two percentage points, 32 per cent of B.C. homeowners said they could not afford their mortgage, while 20 per cent were not sure.
Real Estate Weekly recently released a real estate consumer confidence survey that showed a close split on whether this spring is a good time to buy in Metro Vancouver. According to the survey, 46 per cent of Lower Mainland residents think it's a good time to buy in the next three months, while 42 per cent disagree. Meanwhile, just over half of respondents believe now is a good time to sell.
www.twitter.com/nikimhope
