greater Vancouver and Fraser Valley Real Estate – Real estate pricing 10 years comparison
As observed over the past year and this year, the real estate prices shot up in several advanced economies, which is feared to result in a global housing bubble burst if the markets overheat. The high property prices have not been consistent with a stable real estate market.
It is becoming more and more prominent that the housing bubble is ready to burst all over the world. It will cause a major drying up of the real estate market. Governments might have to intervene to regain balance if the circumstances are to follow those of 2007-09 bubble burst.
The pattern of the slowdown can be seen around the world in Knight Frank’s latest Prime Global Cities Index, which tracks the performance of luxury residential properties across key global cities for the period of March 2016 to March 2017. Real estate hot spots like London and its surrounding areas seem to be rapidly cooling down.
Though the Canadian house prices continue to surge, especially when compared to other parts of the world like Russia and Egypt, the Canadian property sales have now started to slowly cool down. Numbers from the Canadian Real Estate Association (CREA) show that the real estate market across the country is substantially weaker compared to the same time last year.
Canadian housing has experienced a much smaller, shorter decrease in prices during the financial crisis as opposed to a much larger, longer rise in prices during the recovery. When you put this together with the unfathomable rise in housing prices and near-record high household debt-to-income ratios, the Canadian housing bubble looks unstable should the tides turn.
Despite a fall in Canada’s real estate prices and the introduction of a new foreign home buyer’s tax, Vancouver and Toronto show no signs of slowing down. The real estate properties in Vancouver are still expensive and almost unattainable.
This rise seems to step from local investments, especially after a decline in investment from China. Though there is a small decrease in the amount spent on high-end homes, it has not created a substantial effect on the overall Vancouver market.
Vancouver condos have seen an increase of almost 2.2% per month and are likely to increase further. Rentals are going down as landlords are interested in selling the properties while the boom lasts.
The 15% tax on foreign buyers was B.C government’s way to stabilize the increasing property prices. It helped to cool down the heat briefly, but the prices started to increase again after a few months. However, even with the rising prices of properties, Vancouver is becoming an excellent investment city, especially for foreign buyers.
Despite the real estate slowdown across the world, Canada is faring better than most and is trying its best to hold its own. One of the biggest reasons for its stability is the rising housing prices in its major cities like Vancouver and Toronto. They have become attractive investment grounds over the course of 2016-17.
Vancouver, British Columbia, is a major Canadian City. Despite a global housing slowdown, the city is still booming and the prices of its houses are still increasing. Undoubtedly, Vancouver is a good city to invest in for housing as well as commercial purposes.
The city has recently seen a large influx of foreign investment from China, despite a 15% tax on foreign home buyers. This shows that Vancouver has tremendous potential and is a great area to move into. Current Vancouver MLS statistics indicate an average house price of $1,146,150 and 1,154 new listings in July 2017. As of August 2017, the Vancouver housing data shows the average days on the market for a home to be 17 days.
Here are our top 5 reasons for you to move to Vancouver:
Vancouver estate has nine beaches to be proud of. It is a prime location in the hotter months of the year as the cool breeze from the coasts help fight the heat. Be it long walks on the beach with your loved ones or tan dates with your friends, you can have it all! Live in your dream summer vacation beach house permanently!
Not very fond of the ocean? Fret not. Vancouver has the solution. There are three ski mountains near Vancouver: Cypress, Seymour and Grouse. Cypress is the most popular of the three for snowboarders. Whistler’s two mountains are also less than a two-hour drive. You could always take a hiking or trekking trip to Mount St. Helens or even Mt. Hood.
Vancouver is perfect for you if you believe in retail therapy. It has a great fashion district centred on Robson Street, which also hosts a lively art culture. There is a large variety of malls and shops including the historical and trendy Granville Island Public Market. They even have a Farmers Market with over 200 vendor participants!
Public transport is one of the best and most cost-effective ways to travel the city. The locals can choose between SkyTrains and SeaBuses. Visitors can float planes over to Vancouver Island as well as travel on AquaBuses across to Granville Island! The public metro system can also take you as far as the airport if necessary.
Looking for a private or public school or college for your kids? The public school system alone provides education to over 56,000 students every year. Plus, there are fantastic post secondary options like the University of British Columbia, Simon Fraser University, Columbia College, Vancouver Community College, and the Emily Carr Institute of Art & Design.
Conclusion: Albeit a little expensive, living in Vancouver is worth the high costs of living there. The real estate in the major city is booming, and it is not without reason. Everyone wants a piece of Vancouver, and you should grab yours too! Start your search for your Vancouver home today.
Check out this article on Business in Vancouver regarding the 15% property transfer tax & their opinion on it being applied to Non-Canadians moving to Metro Vancouver for employment reasons.
The Real Estate Board of Vancouver has some great resources for why you should always use a Realtor for when you purchase or sell your home, investment property and more!
REALTORS® are professionals who can help you buy or sell a property. They are trained to:
A REALTOR® can provide you with the following services:
One of the great things about living in Vancouver is our cities goals to live green! Here is a great read about how it is helping out commercial buildings and hopefully next, residential.
Here are some great tips on how to live an eco-friendly lifestyle! All of these tips come from the City of Vancouver website (1).
Heating your home consumes about half of your total household energy. By lowering your thermostat, draft proofing your home, and ensuring your furnace is working efficiently, you can save big, while reducing your footprint
Between 80 and 90% of the energy used to wash your clothes is for heating the water. By switching to cold-water washing, you can save up to $52 a year in energy costs.
The Greenest City target for 2020 is to decrease the amount of waste going to the landfill or incinerator by 50%. You can help, by reducing what you throw away.
When shopping, be mindful of what will end up in the landfill. Choosing products with less packaging, buying higher-quality products (or second-hand products), and bringing reusable shopping bags with you can help reduce waste.
Lighting in your home takes up to 20% of your overall electricity use. Changing the way you locate and design lighting in your home, as well as the amount of lighting you use, will help reduce your energy.
Sources: (1) http://vancouver.ca/green-vancouver/tips-for-sustainable-living-at-home.aspx
Check out this article on the new foreign ownership tax, very interesting read! This tax is effective August 2nd, 2016.
Despite recent economic downturns in other parts of the country, the cost of owning a detached, single-family home in Vancouver continues to rise. More and more prospective homeowners are looking at Vancouver condos as an alternative route to homeownership in this flourishing city. As home prices Vancouver continues to rise, luxurious condos in Yaletown and Vancouver downtown condos are an increasingly attractive alternative for many of Vancouver’s up and coming residents.
According to recent statistics, it now costs nearly 120% of a household’s median annual income to purchase a stand-alone house in Vancouver. Royal Bank of Canada, in its 2016 first quarter RBC Housing Affordability Fact Sheet, refers to Vancouver’s 25% year-over-year housing price surge as “epic.” Housing prices for single-family homes in Vancouver have reached such extreme heights that in June Prime Minister Justin Trudeau hosted experts at a Roundtable on Affordable Housing to discuss the situation.
In its 2016 first quarter Housing Trends and Affordability Report, RBC announced an 87.6% aggregate affordability rating for detached, single-family homes in Vancouver. This means that the total cost of owning a home in Vancouver—including mortgage payments, taxes, and utilities—would consume over 87% of a typical family’s monthly pre-tax income.
Kerry Gold, writing about the housing roundtable and citing data from Landcor, reports that the average price for a detached house sold in Vancouver is now nearly $3 million. Other reports place the average sale price at a mere $1.4 million. While these figures would seem to indicate that incomes in Vancouver are robust, home ownership is still not for the faint of heart or light of wallet.
The burgeoning prices of detached single-family homes in Vancouver have put them out of reach for many hopeful homeowners and made them unattractive to investors and lenders. Fortunately, Vancouver condo and apartment prices, while still moving up, have not increased at the same alarming rates. Craig Wright, RBC’s Chief Economist, stated in a recent news release that the2016 first quarter housing affordability rating for Vancouver’s condo apartment market is 46%—a figure that aligns with housing costs in much of the rest of Canada. The same article that reports average detached home prices in the $3 million range indicates that the average condo in Vancouver may be purchased for just under $750,000.
Even as the Vancouver housing market tightens, purchasing a condominium in Vancouver remains an option for those who are ready to stop renting. Instead of having to move far away from the city center, those seeking to own a home can enjoy all the benefits of living in a close-knit community by purchasing a Yaletown condo. Yaletown high-end condos are a perfect way to buy a home sans the extra maintenance and commute time associated with owning a single-family home. Yaletown and downtown Vancouver condos are available with a number of attractive features that make them just right for buyers of all types. Before the market gets any hotter, isn’t it time to find the one that suits you?
Answers to your home-selling questions are just a click away! I will find the value of your home by running a Comparative Market Analysis (CMA) that is based on the current real estate market.
Through the Comparative Market Analysis, I can evaluate the prices of properties similar to yours that have recently sold in your area. This analysis will give you an accurate evaluation of your property’s market value, one of the first essential steps as you prepare to sell your home. Let me make this process as seamless as possible for you in this hot market!!! Click the link below to fill out my free home evaluation form!