More Lower Mainland first-time home buyers looking to the suburbs: survey

VANCOUVER (NEWS 1130) – More first-time homebuyers are looking at the suburbs and smaller cities these days.

The main driving force is affordability, according to the latest BMO housing survey.

It finds first-time buyers prefer the ability to purchase a larger home in the ‘burbs and get more “bang for their buck” compared to major city centres.

As many have spent more than a year working remotely, buyers want more space for a lower price.

The survey, conducted by Pollara Strategic Insights, has also found regionally, buyers in B.C. and Ontario are most likely to make a purchase in the suburbs.

More first-time home buyers are heading to the 'burbs.

A housing survey from @BMO finds buyers want to balance housing costs with savings goals and lifestyle needs.

We also speak with a real estate agent in the Fraser Valley about what she's been seeing.

Details on @NEWS1130 pic.twitter.com/3yHNpMJxRK

— Amanda Wawryk (@AmandaWawryk) April 22, 2021

Sabrina Storey, an agent with RE/MAX Treeland Langley and who specializes in Fraser Valley real estate, says a lot of people are looking to theses areas away from the city so they don’t end up house poor.

“You can buy a place in the Fraser Valley and pay pretty much what you’d be paying for rent downtown,” she says. “The difference is almost double in some parts. Generally, I’d say you can get a condo, even a brand new condo, for around the $600 per-sq.-ft. mark, while downtown you’re looking at $1,200 for most neighbourhoods.”

Storey says it continues to be a seller’s market.

“It’s changing a little bit. It’s been a seller’s market for sure this spring with way more buyer than there are homes available,” says Storey, who adds, “it’s starting to shift. We are seeing a lot more inventory. In fact, last month there were more homes listed in the Fraser Valley than in the 100 year history. But it’s still a seller’s market, even with all of that inventory there’s still way more buyers than there are homes.”

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Storey adds even as more inventory comes on the market, competition is high and multiple offers are still quite common.

The research from BMO also found the vast majority say that when buying their first home, they still want to have money left over to enjoy the things they love – like traveling and shopping.

First-time buyers are also looking at maintaining their savings goals, with 90 per cent wanting to balance monthly housing costs with the ability to save regularly.

Storey says no matter where you are looking, it’s important to ask your realtor to get you in touch with a local specialist.