The Future For Detached Homes In Vancouver: Unbelievable Price Tag!

The value of luxurious detached homes in the city of Vancouver unbelievably bounced from 11% to 90% in just a decade. This upsurge in the value of such homes has been described by experts as “irrational” and is less likely to yield good results for the future.

The sudden price flow has altered the city’s housing market from one that valued a house more than $1 million to an unpredictable hurdle that was once pursued. Truth is, financial experts and various banks have contended that it won’t sustain in the long run.

Andy Yan, acting Director of Simon Fraser University’s city program and researcher, released fresh information relating to the continued surges in Vancouver since 2005, when the city was already Canada’s most “posh”.  “The idea of a million-dollar house was a relative rarity a decade ago in Vancouver,” Mr. Yen says. The proportion of detached homes has increased from 11% in July 2005, to 91% in July 2015 so you can imagine the expensive nature of these houses, added Mr. Yan who in fact went through properties valued by BC Assessment.

“The idea of a million-dollar house was a relative rarity a decade ago in Vancouver,” Mr. Yen says. The proportion of detached homes has increased from 11% in July 2005, to 91% in July 2015 so you can imagine the expensive nature of these houses, added Mr. Yan who in fact went through properties valued by BC Assessment.

Recently evaluated prices for this month are to be sent out to homeowners in early 2017 as industry observers assert that a small number of detached homes registered earlier this year for less than $1-million in the city were prone to be on busy streets, tiny lots, or were tear-downs.

The Chief Executive Officer (CEO) of real estate firm Royal LePage, also said the absurd price rise in the expensive city are unsustainable. “You have severe affordability issues in Vancouver. It has become a serious public-policy issue, so it’s not healthy,” he said in an interview. “We’ve got a market in Vancouver that is appreciating too quickly. Prices are moving upward at an irrational rate”, he added.Royal LePage produces a “price composite” in a formula that focuses on typical properties and excludes sales of luxury mansions. It said its sampling provides a better barometer of trends than average prices, which are skewed upward by sales of high-end properties.

“You have severe affordability issues in Vancouver. It has become a serious public-policy issue, so it’s not healthy,” he said in an interview.

“We’ve got a market in Vancouver that is appreciating too quickly. Prices are moving upward at an irrational rate”, he added. Royal LePage produces a “price composite” in a formula that focuses on typical properties and excludes sales of luxury mansions. It said its sampling provides a better barometer of trends than average prices, which are skewed upward by sales of high-end properties.

History has it that the real estate map for Vancouver is divided into the west and east sides. There was once only an iota of million-dollar properties east of the dividing line of Ontario Street. However today, the east side is covered with detached houses worth $1-million or more.

In the previous year, prices for these homes in Vancouver climbed 38% on the city’s west side and ascended 36 percent on the east side. The real estate trend has spread to the suburbs, where it is second nature to see price hedges of at least 35 percent for detached properties since mid-2015.

As much as there are few hopes for the sustainability of the massive price increase, David Ley is hopeful about the whole thing. He’s a professor of urban geography at the University of British Columbia who predicts that the prices will soften instead of backfire.

“No boom goes on forever. There are downturns, and we are certainly due for one here – not a hard landing but a softening of the current market”, he said. “My guess would be somewhere in the range of plus 5%”, he added.

Vancouver’s housing market is really competitive and involves a whole lot of risks but it made a comeback after the 2008/09 collapse and has been on a slit over the past three years. Across the region, prices for condos and townhouses have rallied at least 25 percent in the previous years.