Real estate is a tricky business that scares off anyone other than those who work in it. Like the stock market, it plummets and sky rockets with very little control and can be a source of frustration for many out there who are looking to sell or buy a home. In the Vancouver area, real estate companies as well as clients are amazed at the fact that the housing prices are continuing to rise, causing all sorts of ripples in the pond of real estate. As you can imagine, there are all sorts of varying opinions on the topic.
As the prices climb higher, those looking for homes in the Vancouver area are getting frustrated. Any homes that they are interested in tend to out of their price range by a lot, meaning that the hunt for the perfect house is becoming much harder for anyone but the top 1%. This time of year typically sees the price for homes dropping, but the prices are continuing to stay constant and rise with each new listing. Competitor houses are having to raise their prices too to stay in the market, and that causes a headache for clients and home owners alike. It’s only a matter of time until something has to change.
Dave Jenkins, Vancouver realtor
Moreover, part of the problem with the Vancouver real estate market is that demand is starting to overtake supply. As people flock to the busy city looking for careers and lives, they aren’t able to find a place to live. The population is booming and with the prices high, people aren’t able to buy or sell, so they stay put.
The fact that there is so few homes is what is causing the hike in price. Buyers are being brought into the market with low mortgage rates and are ignoring the huge increase in home sales prices. The entirety of Vancouver is seeing a price hike, not just the typical hike that occurs in the west side. Every corner of Vancouver with a real estate market is seeing a price hike that is making the statistics go off the charts – or pretty close. With the small supply, customers looking for a place to live are starting to consider other parts of Vancouver, like the east side as well as Burnaby.
Interestingly enough, the market out there for the clients looking for homes is very active and a vocal part of the community. Because finding a home is so hard in this mega area, potential buyers are keeping a close eye on the housing market to watch for when something pops up that is within their price range and the area they’re searching for.
It’s a great thing to see for the city of Vancouver, but it is troublesome that the demand for housing is so vastly overtaking the supply of housing available. Even apartment rates have gone up, meaning that quality of life is becoming a problem for those with lower incomes and part time jobs. With the fact that prices are still continuing to rise at a time of year when they normally plummet to a troublesome low, many are worried about how the market will be a year from now. There’s only so much people can do to survive, after all.
While other housing markets have seem a large decrease in asking prices, Toronto and Vancouver are still climbing as the demand rises and rises for a place to live. With all eyes on the business of real estate of this busy city, we will all have to wait with bated breath for the peak to arrive. It’ll be interesting to see what it is when it does come.
An interesting aspect to understand what you’re getting in Vancouver for your one million dollars is to compare it to what you’d be getting for the same amount of money in other cities around the world. Vancouver will provide you with a family home that is as close to the city as possible and has a backyard space that is livable for the entire family. Paying one million dollars will also land you in a good neighbourhood for the kids. Here is comparison around North America.
The interesting example is New York City. For paying around one million dollars, you’ll get a 3 bedroom home in Brooklyn that is approximately 11km from the centre of the city. The home is 1520 square feet and is notably tiny when you compare it to other regions around the world. Take a home in Minneapolis, Minnesota for example. This is a 4 bedroom home with a spacious layout of 4021 square feet. It’s on a beautiful piece of land and has a great interior. More elaborate still is the home in Winnipeg, Manitoba that has a large square feet area of 3124 and has 6 bedrooms. As you can see, the choice and style seems to vary with the region. Now, a million dollars in Los Angeles, California will get you a 3 bedroom home that is close to par with the house in New York City. It’s prime location, at 8 km from the centre of the city, but you’ll pay for it with a high price tag and a somewhat shabby exterior. You can really see the difference that the market makes as you travel from region to region. The homes in Vancouver have the lovely layouts that you’re looking for, but the high one million dollar price range.
As the market continues to shift in Vancouver, residents, potential buyers, as real estate members are keeping a close eye on what’s what. As people flock to the city for a better life and a fulfilling job, homes continue to be snatched up with a higher price tag every week. All eyes remain on the vivacious city and there are all sorts of wonderings of when the price will finally peak and begin to fall back down to the range that many of the newcomers are looking in. Time will tell.