The demand for housing is off the charts in Vancouver. This is evidence is in calls from numerous real estate professionals and a boiling housing market. CBC news is quoted "Last month's Multiple Listing Service (MLS) sales data, analyzed by research firm Snapstats, reveals by the end of the month sales of downtown Vancouver condos and townhomes just under $600,000 were dramatically outpacing new listings. The same was true for attached properties at the $700,000 mark on Vancouver's east side. In other words, the pool of available homes is draining faster than it's being replenished."
While those looking to become new homeowners in Vancouver are seeing their hopes fade as prices rise many are looking to a villain to blame. The question that remains is, is there a villain or is the market size and population to blame? CBC news reports "Offshore money, absentee landlords and even the latest villain, so called 'shadow-flippers', all get blamed for putting home-owning dreams out of reach. But what if the answer is much simpler — what if there simply isn't enough housing to meet a steadily growing population?"
While many new homes have popped up in the Vancouver metro area relief in the market is nowhere to be found. "Interestingly, the data shows of the approximately 4,500 new homes completed last year, about 1,300 were single family. But since there is no new land, most of those were simply replacing existing older homes — in other words they didn't add additional stock."
While different viewpoints fuel heated arguments trying to determine the cause of the crisis, foreign investment and "previous market crash recovery" have been two of the main causes thrown around in recent debate.
"An added factor, according to the B.C. Real Estate Association, is that Vancouver is still, in a way, recovering from the leaky condo crisis of the 90s. Both buyers and sellers were scared away from condos for years, and supply took years to catch up. Still, that argument isn't accepted by many who see foreign cash as the single biggest reason why sales are off the charts and home ownership is a dying dream."
From condos to single family homes, for those looking to move to Vancouver, the market remains unfriendly. But for those looking to sell or gain some cash from new-found equity in their inflated home values, the good time just keep on coming.Source: http://www.cbc.ca/news/canada/british-columbia/vancouver-real-estate-prices
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