Lower Mainland (BC) market

[Shaidah K.]

Many locals have probably seen this article of a shack selling for more than asking price of $2.5M: http://www.vancitybuzz.com/2016/02/rundown-point-g...

You would think the market would crash sometime. With foreign money coming in and buying property, and with predictions of the Canadian dollar to stay at a constant value of ~$0.70USD, property values may continue to rise.   

I work for a municipality, working with developers to develop their land, reviewing the engineering side of things.  I have been working for 12 years, and every years is just as busy or busier than the previous.  I am not just saying this, our yearly stats support that development is not slowing down.  

I am in investor.  I have my home and a townhouse rented out, and am looking into expanding my portfolio but not in the lower mainland market.  

In October, I refinanced my home to change the mortgage so that I could have a HELOC. I bought my house for $418K in 2005 (built in 1980). In October of 2015, it was appraised at $910K. I live on a busy street in Richmond, BC. We bought this home with the intention of living in it until retirement. This is our first home and we are emotionally attached. We have put a lot of time and money into improving it.

A couple days ago, I had an agent call and tell me that he just sold 3 houses (all tear-downs, one already demolished) a few lots east of my property.  Each sold for approx. $1.5M and was wondering if I was thinking of selling.  

3 For Sale signs just went up a few lots over, west of us.  The properties are ranging from $1.85M (tear down) to $2.1 for a nice looking home.

I told the agent that everything is for sale for the right price.  But the problem is, we wouldn't be able to buy anything or much in Richmond.  We would have to relocate somewhere else.  We chose Richmond as it is central between where I work and where my husband works.  We also don't want to be the one who holds out and developers build townhouses/condos on all sides of us.  

I also don't want to kick myself in the future for not accepting $1.5M if the market crashes.  

I am just putting this out there for discussion, to get some thoughts from others.  What would you do?  We have been jokingly discussing selling and moving to Costa Rica...  Or we could sell and invest in several properties outside of the lower mainland.  But we would have to move and to be close enough to our jobs, we wouldn't be able to afford anything.  

Thanks for reading and I look forward to hearing what others have to say!