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While the stock market is looking less than rosy, Baby Boomers in Vancouver are sitting on the proverbial golden egg.

Average prices for single homes in Vancouver in 1980 was $100,000. The same homes now sell for around $1,000,000. That increase in value coupled with low low interest rates finance renovations that only improve the value even more.

They can use this money to renovate, invest in more real estate or help their own children enter a rather formidable real estate market. With the kids moved out baby boomers are also downsizing and moving to condos closer to luxury amenities and within walking distance to the waterfront.
There are some who speculated that the amount of baby boomers rushing to sell would ultimately reduce property values but that hasn't happened in the lower mainland. Despite population growth of *55% in BC, boomers have not negatively impacted the market. (*Source BC Statistics)

Last month, there was a reported increase of 67.1% of property sales over February 2009 and a 28.6% increase over January 2009 by the Real Estate Board of Greater Vancouver. Purchasers fueled by the Olympics and flocking from Mainland China may be the source of at least a good portion of this increase.

Downsizing has allowed boomers to liquidate some equity for retirement. For some, purchasing condos in the Fraser Valley can leave as much as $1 mill. as a nest egg for retirement.

But boomers aren't willing to give up the space to which they've been accustomed. They may not be willing to move into a 500 square foot home that new home owners are used to. Two bedrooms with ensuite and den with all amenities are usually a requirement. There is also the option of extending their original properties through renovation/remodeling to allow for rental space and retention of valuable property.

Source, The Vancouver Sun