According to the latest statistics, Vancouver property prices are showing no sign of slowing down. As it stands, buying a piece of property in Vancouver takes about eleven times the average family’s income.
This situation is certainly unique say experts from Cape May real estate. The cost of real estate in terms of the average income is pretty explosive. According to research, the ratio of real estate price to average Canadian income in the city is two times the national average.
Over the past two years these prices have continued to rise despite what naysayers have predicted. While foreign investment certainly plays a role, Canada doesn’t actually track foreign investment in residential housing so the extent to which this is fuelling the boom remains something of a mystery.
Anecdotal evidence of course is spreading rapidly with tales of Chinese buyers showing up at homes in desirable neighbourhoods with suitcases full of cash. While the frequency of such situations is debatable, these stories do nevertheless speak to the kind of craze the Vancouver real estate market is undergoing at present. So, seize the moment if you want to sell your house fast.
Vancouver real estate continues to grow, but for how long will this continue on? According to the experts, there have been major corrections in the real estate market in the past. Back in 1981-1982 the city experienced a 30% correction; in 1995-1996 one of 14%; and in 2008-2009 a drop of 21%.
Yet, despite these market corrections, the general trend has been upwards. The average cost of a home in the Vancouver region is still twenty-one percent higher than a year ago and, most importantly, 188% higher than a decade ago.
Although some real estate agents report that foreign investment accounts for only a small portion of real estate transactions, others maintain that this investment is of more consequence because it is focused primarily on the highest value homes. Thus, foreign investment in the city is responsible for snagging as much as ninety-percent of the luxury homes (that is homes over two million dollars).
What happens next is anyone’s guess, but with credit getting a little tighter in China and an all time high of average Canadian debt load, some believe that prices will inevitably decline. Yet, while this might seem a reasonable prediction, so far the Vancouver real estate market has defied such speculations.