Home owners in Vancouver are being considered as millionaires according to reports from BC an assessment analyzed by urban planner Andy Yan. This is as a result of the fact that virtually all the homes worth less than $1 million have been sold out.
Data shows that 99.75 of homes in Vancouver are valued over $1 million in 2016. This is a95 increase from the previous years as repots for 2015 shows 91% of homes were above $1 million.
Before this, Yan explained that there was the “$1 million line”. It was a comparison of homes that were above and below $1million.
In the past, Yan considered the $1million as a average value for homes in the city in regards to the sentiment held by Canadians about this amount. $1 million in Canada was considered as a “luxury real estate” for many.
But between 2016 and 2017, the BC Assessment indicates that the average home price in Vancouver rose by 32% and home are presently sold over $326 billion.
This takes Yan to look back at home prices in 2006 when there was only 19% of homes worth over $1 million in the market. But this seems like a distant memory for Vancouver where home prices have grown above 152%.
Ironically, the average household earnings in Vancouver rose by a mere 24$ from $63,600 in 2016 to $78,870 in January.
The high home prices have led many to question what steps should be take to cool down home prices. According to Yan it is not a simple question to tackle. Measures should be taken on both the demand and supply end to tackle the issue at hand.