According to the most recent date, the continued surge in Vancouver real estate sales is a bit of an anomaly, at least with regards to the rest of the country. While the sale of homes up for resale across the country remains steady, Toronto and especially Vancouver definitely skew the existing data.
Homes for sale are up about 2.7 percent from last year, and prices have climbed just over eight and half percentage points. Certain areas of Vancouver and Toronto have, however, strongly biased the results, say experts.
The higher demand areas of Vancouver and the general demand for homes in Toronto have essentially made the rise in prices look greater than they actually are across the rest of Canada. This has skewed the national data.
According to the Canadian Real Estate Association, the national average cost of a home is 376,817. 00. But, again, this takes into account the most expensive areas of Canada’s largest cities, therefore skewing the real costs in most other areas.
When Vancouver is taken out of the equation, the rise in prices is actually about 5.6 percent nationally. If Toronto is likewise removed from the calculations, experts agree that the true rise in house prices for the rest of Canada is closer to 3.7 percent.
What do these statistics mean though? Well for starters, the data reveals that what is happening in Vancouver is simply not being mirrored in other parts of the country—with the exception to a certain degree of Toronto. Vancouver continues to see a huge demand and an incredibly active real estate market, going far beyond anything happening across the nation.
In other large cities for instance, prices have actually declined. Take Calgary, Edmonton and Halifax. In these cities, posted real estate prices have gone down from last year.
Toronto of course is seeing marked price rises in real estate as demand continues to outstrip supply. Here, an 8.7 percent rise in prices is noted from the previous year.
The average price in Vancouver for a home is whopping 831,555.00. Higher price homes have obviously affected the average, but even taking this into account, this rise is housing costs is up over twenty-five percent from last year alone.
Although the average Vancouver home, meaning not a high-end, luxury home, is actually only up about six percent from last year, the insatiable demand for Vancouver real estate shows little sign of dissipating.
The average cost of a regular home in the Vancouver area is about 627,000.00. This is still, according to all accounts, much greater than anywhere else in Canada. Vancouver is still by far the most expensive place to live in terms of real estate.
Of course, the continued rise in prices and the heated market conditions have left some wondering whether or not this is cause for concern. Most notably, some worry whether or not these conditions can continue on as they have.
With this continued rise in market prices, some are preparing themselves for a downturn. But is there really a chance of a crash in store for investors?
While the real estate market in Canada as a whole has looked pretty balanced so far this year, after the huge upsurges and downturns of previous years, the continued sensational rise in the Vancouver market leaves some wondering how long this can continue on.
Although shorter mortgage terms were introduced in April, this has yet to yield a softening of demand in Vancouver. In fact, with international investors literally lining up to get in on the action, Vancouver real estate seems to be unaffected.
Some condos have for instance reported selling out in just under three hours, while for others three days seems to be the standard. Although these kind of sales may not be typical, higher end, luxury buildings are certainly seeing strengthened activity.
According to some managers, marketers and realtors, desirable areas in Vancouver are being snatched up by international investors. Condominium marketers are therefore learning how to gear their sales towards these international investors, particularly the Chinese.
When it comes down to it, the lifestyle factors and the sheer desirability of Vancouver as a place to live, means that foreign investment will most likely keep Vancouver shielded from any downturns in the market. Demand from mainland China in particular will continue to bolster the Vancouver housing market.
As such, many realtors believe that the sheer desirability of Vancouver as a place to live for both local and international investors will keep Vancouver prices steady. Given the trend so far, there seems little cause for concern any time soon.