Monday 24 October 2011

Size Matters…. Lot Size That Is! - Critical Factors in Getting your Home Sold – Part 3

In Part 1 and 2 of Critical Factors in Getting your Home Sold, we talked about Location of your home as well as Market Conditions. We talked about why these factors matter and how they can affect the sale of your home.

Today, I am going to discuss Lot Size with respect to Greater Vancouver. Lot size is an interesting topic when discussing property value, especially considering the changes we are seeing in the size of lots that new homes are being built upon. In order to best understand why lot size matters to the sale of your home in Greater Vancouver and the Fraser Valley, we need to go back to Part 1 of this series where I discussed a few of the economic drivers specific to the Greater Vancouver Real Estate Market. Specifically, I want to discuss the drivers which affect Supply and Demand; the lack of land available for development. Because of the restrictions placed on land due to the Ocean, Mountains, US Border and Agricultural Land Reserve, we, plain and simple, are running out of land to build new homes on. For example, the area of Coquitlam called Burke Mountain is currently being developed and is the last major area within Coquitlam where new homes can be built. Because of this, new homes are being built on lots that are no bigger than 4000 to 5000 square feet, a drastic difference from homes built throughout Coquitlam in previous decades on large lots of 7500 to 9000 square feet.

So what am I trying to say here? As the amount of useable land decreases, you are likely to see large lots become a scarcity. It is true that as you move your real estate search further out in the Fraser Valley this trend tends to decrease depending on location, a factor, which will dictate demand. All in all though, the trend is certain to be repeated as amenities and transportation improve throughout the outlying regions of Greater Vancouver and the Fraser Valley. In addition if people continue to move here at the rates projected, then we are going to see a different Vancouver taking shape over the next couple of decades.

So does lot size matter? – Of course! The closer you are to Vancouver and the larger the lot you have, the better your position from a long-term investment point of view. Regardless of these factors, if you love your home and the property is functioning in the ways that you need it to be, then you my friend, have a great piece of Real Estate!

Thanks for taking the time to read my blog!

If you are interested in the current market here is a link to Greater Vancouver Real Estate Boards Press Release – (http://www.rebgv.org/news-statistics/home-listings-continue-rise-greater-vancouver-housing-market)

As always, if you would like more information about my services or any properties that you are interested in, feel free to call me @ 604.561.4371 or e-mail me @ jkyle@remax.net

All the Best!

Jeremy Kyle MBA

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