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Secret Sauce Seniors

Market Updates | August 2, 2019

Big businesses, small businesses, and investors are always searching for the secret sauce that will bring success or produce more success. When it comes to investing in real estate, I have previously written that the secret sauce for a great investment town are the following: warehousing, manufacturing, distribution, and most importantly, more industrial land for developing—a rare commodity in the Fraser Valley.

The key to any growing, productive, and healthy city or community are jobs, and lots of them! These jobs create a community for the young, trained, and educated working individuals that get married, have kids, and buy or rent homes. If the industrial landmass is available and affordable, companies relocate, grow, and do well, making for many well-paying jobs.

As a real estate investment realtor, and an investor of numerous properties, I have claimed and shared that this is one of the best secret sauces to successful investment portfolios in the suburbs. Yes, there are other secret sauces too, such as close proximity to transit and school catchments; however, in the end, it really comes down to a city or community that is generating the opportunity to create jobs.

I believe that we can all agree that industrial land is the secret sauce to build a great city, and more importantly for an investor, that it is the place to be investing in real estate. But what about seniors being the secret sauce? As an investor, should we be taking a serious look at the where seniors are living and relocating as well? Seniors today are healthier, wealthier, and more fertile than ever. Yes, fertile! Stats Canada revealed that seniors aged 65 and older today are having twice as many children as the seniors from a study completed in 1986. These seniors have children in the workforce, and they themselves are living longer and being productive in the workforce.

With seniors becoming wealthier, healthier, and younger than ever, they are becoming the new secret sauce. Seniors are asset rich, they are mobile, and many are not dependent on a full-time job. There are questions that arise. Where should they live out their senior years? Should they continue to own or rent and invest their property capital? Or, should they sell their large properties and help younger children to get into their own homes?

These young seniors’ decisions on where they live and what they own or rent will shape not only their lives over the next two decades, but more importantly for the investor, shape the well-being of the city or community for the next two decades. The Fraser Valley is prime time for seniors. Seniors that have lived and owned property in Vancouver and Fraser Valley are house rich. Seniors from across Canada are no different than other Canadians or the Foreign buyers and immigrants that want to call Canada home. A large majority, if they could afford the West Coast lifestyle, would continue to reside or relocate to Vancouver or the Fraser Valley.

Investors, I advise you to add one more secret sauce to your “must-haves” when it comes to investing in a top investment town. My “must-haves” in my investment cupboard are the following: affordable industrial land, a young educated/trained workforce, families, good schools, and last, but not least, seniors.

The market in July has continued to follow the late spring trend throughout the region (Vancouver and Fraser Valley). This month I have broken down the market into percentages for each sub-market and property types. What are the percentages in regards to a Sellers’, Balanced, or Buyers’ market throughout the region? A quick refresher, the previous year showed a strong trend that the luxury market was in the toilet while the entry-level or affordable markets were in a balanced to soft sellers’ market. This trend is still well entrenched, and most significantly it screams “drive till you qualify”, which is why the Fraser Valleys market is significantly stronger than the Vancouver market.

The Vancouver percentage break down for the three market conditions in July is:

  • Sellers’ market 18%
  • Balanced market 29%
  • Buyers’ market 53%

The Fraser Valley percentage break down for the three market conditions in July is:

  • Sellers’ market 30%
  • Balanced market 37%
  • Buyers’ market 33%

Looking at these percentages certainly shows where the buyers are alive and active. Again “drive till you qualify”!

Please reach out to our team for more information or help with all your real estate needs.

Click Below To See The Fraser Valley Stats For July:

Fraser Valley July STR Stats

Click Below To See The Vancouver Stats For July:

Vancouver July STR Stats

STR (Sell Through Rate) Formula = Sales ÷ Active Listings + Failed Listings + Sales

 

Randy Dyck
Personal Real Estate Corporation
604-807-4366 or randy@eximus.com