Record-low supply, bidding wars push housing prices skyward across Lower Mainland

Fahmeena Azim says she's one of the lucky ones — she bought a home in Surrey 30 years ago after scraping together a downpayment. 

When she put her home on the market in the fall, with plans to move to the up-and-coming Silver Valley area in Maple Ridge, she anticipated it would sell fast — but not within a mere 24 hours. 

"I thought I had time, about a month to start looking with the Realtor to find a new place, but everything happened so fast," she said.

Azim then began her rushed search for a new home, viewing 15 homes and putting an offer on 10 of them. All of them sold for $65,000 to $100,000 over the original asking price.

"If you wanted to go to an open house there was a lineup ... People were in a panic because the prices were all going up," she said. 

Housing prices in Greater Vancouver have long been out of reach for many prospective buyers, with sky-high bidding wars the norm. But Realtors say a record-low housing supply coupled with interest rates have pushed prices so high, even current homeowners fear they could become priced out of the market if they try to sell and buy a new property — even in areas previously considered to be more affordable. 

Randi Sharan, a Realtor of 27 years, recently saw a townhouse in the Fleetwood neighborhood of Surrey sell for 39 per cent over asking price, going for just under $1.1 million after receiving 37 offers in seven days.

"It makes it difficult for homebuyers to make the choices to be able to make their next step," said Sharan, adding that first-time buyers who could afford asking prices end up priced out entirely once bidding begins. 

"I feel like there's a lot of homeowners that would like to downsize right now ... they're not doing anything because townhomes are selling for $1.1 million."

Updated numbers from the Real Estate Board of Greater Vancouver show the average price of a detached home in Greater Vancouver increased to an all-time high of $2.3 million, a 25 per cent increase in the last year alone.

In the Fraser Valley, previously considered a more affordable alternative, the average price of a detached home went up to $1.8 million last month, a 42 per cent increase over the last year.

Meanwhile, the number of homes for sale in Canada has hit a record low.

David Eby, B.C.'s minister responsible for housing, said in an interview with CBC News that while measures have been taken to address "toxic demand," a full suite of measures in place to help address housing is coming in the fall legislative session.

With the market projected to go up another 10 per cent before year's end, Rashan is warnings prospective buyers to make home purchases within their means.

"What worries me is years from now, when these interest rates may or not be what they are, is that the home is still going to be affordable for you," she said.

"The reality is that what goes up must come down — I'm not saying it's a bubble but I'm saying that there will be an adjustment period and the interest rate will come to play in that."

Azim, who eventually bought a home in the Silver Valley area of Maple Ridge, said she worries about the next generation, who won't have 30 years of home equity to back a purchase.

"It is hard nowadays to get a house if you're a young couple getting married. The amount of money I got selling my house and buying a new one, it was OK for me — but for my sons it's going to be very difficult."