Hi guys, I just wanted to start this thread to keep the Vancouverites on this website updated with what's going on in Abbotsford (my backyard). I've been on BiggerPockets for 4 years now and I know finding information about investing in Canadian cities is very difficult. Most of the information/discussions are typically based on US cities.
Anyways, I plan to post news articles and events that will have affect on real estate prices in abbotsford/Fraser Valley and encourage any discussion on the topic!
I realize Abbotsford isn't a glorious a 1% or cash-flow heavy city which is the principals BiggerPockets was built on but investing out of state/province isn't for everyone. I personally own 2 properties out of area and although they've done very well for me I do plan to buy my next rental out here.
734-unit apartment-and-townhouse project proposed near Highstreet in Abbotsford
Development planned for Mt. Lehman Road and Cardinal Avenue
A large multi-family development proposed north of Highstreet shopping centre includes seven mid-rise apartment buildings and 22 townhouse buildings, comprising 734 units.
The planned project is located at the southeast corner of the intersection of Cardinal Avenue and Mt. Lehman Road – the current location of Fraser Valley Steel and Wire.
Credit: Vikki Hopes
Extremely low inventory pushing Chilliwack housing crunch
Local builder’s remedy to low supply? Build more quality, affordable homes!
One of the metrics used to gauge the real estate market is Months of Inventory — the number of months it would take to sell current inventories at the current rate of sales. Having 5 or 6 months of supply is historically average — at the end of July 2021, Chilliwack’s months of inventory was just 1.9.
Large numbers of residents are moving out to Chilliwack from closer to the Vancouver core, especially as work-from-home options remain in place by many employers. This only adds to the housing shortage for current residents.
A living trend that was most popular in the 1940s is making a comeback in real estate markets across Canada: multigenerational living.
“Engel & Völkers is noticing a rise in families coming together and pooling money to purchase luxury properties in the city and its peripheral areas,” Anita Springate-Renaud, a license partner with Engel & Völkers Toronto Central, told Daily Hive. “With the pandemic forcing families to be apart, multigenerational living picked up momentum as a way to one, pool resources and purchase luxury real estate and two, stay connected with family.”
Credit: Laura Hanrahan
A great way to build wealth if you have the opportunity to do this or can stomach living with family LOL. Its basically a form of house hacking!
Housing starts in Canada declined 3.2% over a month earlier to 272,176 units in July of 2021, compared to market expectations of 275,000 units, according to Canada Mortgage and Housing Corporation (CMHC). It was the lowest reading since last December. Urban starts fell by 0.7% to 251,190 units, as multiple urban starts decreased by 3.1% to 184,759 units in July, while single-detached urban starts increased by 7.1% to 64,242 units. Rural starts were estimated at a seasonally adjusted annual rate of 23,175 units.
Source: Canada Mortgage and Housing Corporation
Here is a great chart of Canada housing starts. If you click “max” on the chart you can see we are historic highs in terms of building. This would suggest that we will see some price relief once these projects begin completing and more inventory is introduced to the market.
Chris Chopik says "yes." The Toronto real estate agent has been calling for years for a climate risk assessment to be added to real estate listings in Canada the same way that data is readily available on the ease of walking from any address. He said these conversations need to become commonplace and factored into a property's value.
"For sure, I would say consumers should consider where they're buying, and what they're buying, in the context of climate risk," he told CBC News.
Credit: Emma Paling, CBC News
Building Mission’s waterfront ‘financially viable’ for developers, planners say
Phase 1 of creating masterplan for 296-acre area complete, moving to phase 2…
Getting into one of these projects right on the water would make for a great long term hold in my opinion. I suspect these projects will be quite affordable in comparison to other waterfront property in the lower mainland and Fraser Valley.
Credit: Patrick Penner
2021 on pace to be the hottest ever real estate year in Chilliwack area
"B.C. Real Estate Association forecasts a 32% increase in sales over last year with a cooling in 2022."
What do I think we will see next year? I'm guessing we will see the condo market continue to run hot with a cooling in the detached and possibly the townhome market. This would be due to affordability and detached/townhome growth has significantly outpaced condos in 2021. Therefore, we could see the condo market playing catchup.
Credit: Paul Henderson
Thanks for the updates!
@Maksu Ize Absolutely! 👊
Bank of Canada plans to raise interest rate before moving to reduce bond holdings
“Bank of Canada governor Tiff Macklem says the central bank plans to increase interest rates before it reduces the size of its government bond holdings, although its timing on the rate hike will depend on the economic recovery”
Credit: Salmaan Farooqui
“Vancouver developer buys 12.4 acres in Chilliwack after snapping up land in Squamish and selling out an industrial strata project in Langley”.
Credit: Western Investor
New massive ski resort proposed next to Trans-Canada Highway in Chilliwack.
There is a new proposal to build a massive ski resort in the mountains that frame Chilliwack to the southeast
Bridal Veil Mountain Resort (BVMR) in the Fraser Valley would have about 11,500 acres of mountain recreation terrain, covering a footprint that spans Mt. Mercer, Mt. Thurston, and Mt. Archibald, and supported by a large Valley Base Village and two alpine base villages.
This could be a great short term rental play.
Reopening of borders may fuel a fresh round of Canadian real estate madness.
“Just when you thought you could catch a break from pandemic-fuelled housing madness, experts are predicting the reopening of the U.S.-Canada border, and Canada’s commitment to boost immigration, could fuel even higher levels of demand. All those new arrivals, students and family members rejoining loved ones will need places to live. And Canada’s housing supply is tight”
We expect low supply and outrageous demand to continue in the short term.
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