How to buy real estate in Vancouver in 2017
The real estate market in Vancouver has been in freefall for years.
But thanks to a string of record-setting house price rises, the market is starting to regain momentum.
What you need to know about the city’s booming real estate sector article Real estate in the city is a big business, accounting for about 10 per cent of Vancouver’s overall property turnover, but in 2017 sales and prices were up 3 per cent on the same period last year.
And, according to a report by the real estate consultancy firm Trulia, Vancouver’s real estate is on track to be the most expensive in the world.
What we know about real estate sales in Vancouver The city is currently home to roughly 2.5 million people, the most in Canada.
The population grew by a healthy 3 per on average over the past three years, but has now fallen below 3 million for the first time in a decade.
That means Vancouver has lost a third of its population since 1990, and more than half of all housing is occupied by single-family houses.
A typical house in Vancouver is worth around $1.5m, while a typical condo is worth $1m, and a typical townhouse is $1 million.
In 2017, the average price of a detached house in the Greater Vancouver area was $1,094,000.
Trulia says the average condo price in Vancouver last year was $926,000, up 7 per cent from the same year a decade ago.
The average price for a townhouse in Vancouver was $638,000 last year, up 20 per cent.
But that doesn’t account for the price rises in detached houses and condos.
What’s behind the soaring prices?
Some of the reason behind Vancouver’s surging prices is down to its booming housing market.
Real estate investment trusts have become the backbone of Vancouver real estate investing, allowing investors to get into the market on a large scale.
A few years ago, a single family home in Vancouver sold for $1 and an apartment for $2 million.
Now, it’s $4.7 million and $4 million, respectively.
This has led to a surge in prices, as developers and developers have taken advantage of a low mortgage rate to raise the price of the market, and developers are selling at a discount.
The number of apartments in the market has also increased over the last few years, with a record 2,914 sold in the first half of 2017.
According to Trulia’s report, the rise in prices has been fuelled by the fact that the city now has a shortage of affordable housing.
“The market is really going through a real estate frenzy right now, with prices in the stratosphere,” Trulia chief economist Chris Bohn said in a press release.
The market is experiencing a real price boom right now.
But, it also needs a real supply of new homes.
And that’s why prices are going up fast.
Vancouver’s housing affordability crisis in 2017: a guide to housing affordability article The average mortgage rate in the Vancouver area is 5.5 per cent, and this is also the lowest in the country, according the Real Estate Board of Greater Vancouver.
Truslulia’s research shows that while Vancouver has some of the highest prices in Canada, it has the lowest affordability rate.
According the report, Vancouver has the most unaffordable housing in the whole country, with median home prices in Metro Vancouver at $2.2 million, or $2,600 a square foot.
But this isn’t because of its high cost of living.
“Budget housing in Vancouver actually has the second highest affordability in the province, at $3.8 million, just behind Surrey, where the average mortgage is just $2 per month,” Truslovas chief economist, Mark Belsky, said in the release.
“So Vancouver is the most affordable market in Canada for those who are making less than $100,000 a year.
But the affordability rate has gone way up.”
Why Vancouver’s soaring prices are fuelling the housing crisis in Vancouver What’s happening in Vancouver’s rental market?
Vancouver’s high-rise, mixed-use development boom is now coming to an end.
“This is the first real estate bubble in Vancouver since 2005,” Trumla’s Bohn told The Economist.
“It’s been a big one, with pent-up demand.”
This boom has fuelled prices for new and existing home owners, and the developers that are buying them.
“For a long time, builders were able to pay a lot of people a lot less than they could pay a builder,” Bohn explained.
“They could rent out the building, but the developers were the ones who were paying the builders.”
The demand for these buildings is now largely being driven by the booming construction industry, which is also booming in Canada’s other major cities.
The demand has led builders to build much larger buildings, which can hold much more tenants.
“There are lots of people