Homeowners of million-dollar properties in Metro Vancouver are trying to cash-out in the city's hot market and are increasingly moving to B.C.'s rural areas.
Real estate experts have observed a growing trend of millionaire homeowners selling their urban properties in exchange for hobby farms and acreages in the countryside. As reported by Times Colonist, real estate data and analysis firm, Landcor Data Corporation, has recorded 3,226 sales of single-family detached homes of more than 2 acres in 2015, up from 2,988 the previous year. In addition, there are 1,139 units of residential, vacant land larger than 2 acres sold last year, up from 803 in 2014.
House prices in Vancouver has surged to 11 percent, with home sales up by 28 percent in 2015, The Vancouver Sun reported.
According to Ian Hornby, a realtor with Home & Life in Chilliwack, Ryder Lake community has seen a surge in homebuyers from the metro, acquiring hobby farms in the area. Most of them are actually not buying rural properties for speculation or investment. Hornby said they are those who have a "dream" of owning some space and do some farming.
Times Colonist also noted that real estate experts expect the trend to further accelerate particularly this spring and summer. Homeowners are realizing the kind of lifestyle they can get outside of Vancouver with the money they have. For instance, they can sell their city homes for $3 million and acquire 10 acres of land for only $700,000 to $900,000. In the countryside, they can buy nicer new home, a farm, new car and then put some money in the bank.
"Part of it is people cashing their equity out of the city and looking for larger space and a less frenetic lifestyle," said Don Campbell, a senior analyst from The Real Estate Investment Network. "This can be achieved more readily now, even if they still have jobs in Vancouver, due to the increase in accessibility on highways."
