If you recently bought a condo in Vancouver this probably isn’t what you want to hear, but let’s just think about this situation realistically. Let’s pretend we get the ‘perfect’ scenario of constantly rising house prices. A young couple buys a condo to get on the property ladder and plans on starting a family and moving up to a larger home in a few years. When it’s time to sell, it’s a jackpot! Their condo has increased by $100 grand and they magically find a buyer at that price right away..
but wait. That home they wanted to buy is up $200 grand. Better hope their income has been increasing a lot faster than everyone else.
And that’s in the magic ‘balanced’ scenario where homes and condos increase at roughly the same percentage year over year. For a while here in Vancouver, house prices have lept up while condos have been mostly flat. The hypothetical move-up buyer is even more screwed.
Maybe it’s time to get some smaller furniture and turn the ‘den’ into a babies room, since we don’t seem to build many large family size apartments in Vancouver. It’s either houses or ‘junior’ one bedrooms with little in between.
Constantly increasing house prices means you only win if you sell and get out of town or sell and rent. The move-up buyer is screwed.