Although housing prices in the metro Vancouver area continue to remain higher than ever, experts say that the market is in fact ‘balanced’. The Conference Board of the city resale index makes it clear that neither buyers or sellers are advantaged in the market. Meaning that supply and demand are equalizing.
Despite this apparent balance however the truth of the matter is that housing prices are still up twenty percent from last year alone. While there was a slight prices dip in 2010, the market has been pretty heated since then. The sales to listings ratio shows that the market remains in good shape.
Some naysayers continue to prophesy a housing crash, feeling that the continued high prices are nothing more than a market bubble. Nevertheless, there have been few signs so far that the end of the market fever is coming.
Although prices remain steep, experts say that homebuyers are not all that downtrodden. According to recent statistics, those seeking to purchase a home in Vancouver can still find deals.
The market has by all accounts simply been skewed by pricy buys in the most desirable neighbourhoods. The average resale price is therefore not an entirely accurate representation of what is going on for most people.
Relatively affordable homes are still to be had, say Vancouver Realtors. Taking some time to do your research and speaking with an expert you trust can help you find a house at a good deal.
The average price of a Homes for sale in Vancouver area is over 800,000 but the median price, meaning the price of the middle sales, is below six hundred thousand. The higher prices at the top therefore give the impression that prices are out of range for most buyers, but this is apparently not the case.
The gap between the average price and the median price is explained by the fact that certain regions of metro Vancouver are simply way off the charts in terms of prices. Single-detached homes are now taking up a larger portion of the market share and are as such boosting the city’s average price. This plus the fact that the West Vancouver region is growing in market share go together to explain the higher than expected average cost.
For those seeking lower cost housing, however, there is still hope. According to recent reports, homes for less than 500,000 can still be found, though these include condos and row units. Within this market though, buyers are becoming increasingly favoured by market conditions, meaning that there are potentially good deals to be had.
The more affordable areas in the lower mainland still can yield good investments for buyers. Moreover, these areas and their prices suggest that a housing bubble is not likely, at least within these areas and these lower cost homes.
Those interested in getting into the market but without the funds to purchase a house in West Vancouver can still do relatively well by buying outside the most expensive areas. Condos and the like can still yield a good return without the fear of losing out due to a housing bubble.
So taking into account these parameters, the Vancouver market can be said to be balanced overall. Though some homes in certain areas may be in danger of inflated prices, taken as a whole, there are still some affordable areas and units for those on tighter budgets.