A Culture of Real Estate Obsession

Go type into a Google News search "Real Estate Vancouver" right now and you will see several stories about a house in East Vancouver that was recently listed and is the "cheapest detached home in Vancouver". 

This home is selling for $599,000 and it will sell by next week. 

I find it intriguing (and a bit depressing) that such hype is built around a small (1951 sqft) cottage of a home that is selling for $600,000 on the edge of an industrial zone in East Van. It is a true testament to where the inflation of the Vancouver Real Estate Market has brought us. Not to mention the fact that I can almost guarantee that this home will sell for well over it's asking price.

Is this unreasonable? It's all a matter of perspective.

As a comparison, I will use the house I grew up in. The home in question is smack dab in the heart of a quaint little mountain town in the Central Interior of BC. The town is called Mackenzie and it boasts a population of 4,539 residents, according to it's HelloBC.com website. When my parents decided to sell our family home shortly after I moved away for college, they put it on the market and were able to fetch a whopping $99,000 for a house a bit bigger than the above-mentioned hyped up Clark St character home. It also sits on a bigger lot and has a treefort in the back yard!

Seems pretty out of proportion, doesn't it? However, it's important to keep in mind that when you buy a home, you are also buying into the quality and style of life that it comes with.

What do I mean by that, you say? Well, I live in Vancouver because I value the opportunities and lifestyle that only a city can provide. If I want to go see a heavy metal show on a Tuesday, or take my fiancee to see a play, or order 5 different craft beers, at 5 different pubs, in a 5 block radius...I can do that. But only because I live in the city. If I valued the comfort, quietness, and safety that only a small mountain town can provide, more than I value the amenities that come with city living, it wouldn't make any sense for me to consider paying $500,000 for the Vancouver home. 

All that said, I don't think the Clark St home is unreasonably priced. It is the perfect home for a young family that wants to step up their square footage from a condo, but doesn't necessarily want to spend a million dollars. And surprise surprise...I have clients who are interested in it. Cross your fingers for us, it's going to be a fight!

You can check out the listing here.

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