Vibrant Real Estate Activity Turning Vancouverites To Millionaires
Because of Vancouver’s vibrant activity in their red-hot real estate market, headlines were made in the recent publication of its WealthScapes analysis, marketing services firm Environics Analytics, which mentioned that the city of Vancouver has been noted to be the first city in Canada with millionaires. The analysis showed that the net worth of average houses in Vancouver has gone up to $1,036,202 over the recent year, followed by a 4.3 percent increase in the national benchmark household net worth, which went up to 680,098 with the increase of B.C households’ net worth by 6.3 percent to $883,049 at the same time.
The increase in Vancouver’s property value theoretically makes it the wealthiest city in Canada, looking at the value of the properties worth more than the 4.1 percent growth rate of the debt of household throughout the country, which went up to $133,170 average over the past year, making Vancouver extremely wealthy compared to other parts of the country. On the other hand, consumers and the players in the industry have to be cautioned via the report to keep an open eye on any disturbing factor.
The economic data vice president for Environics Analytics who also happened to come up with the WealthScapes analysis said: “Canada is really a tale of two economies at the moment, we saw the oil-based provinces, especially metro centers, really taking a beating relative to the rest of Canada. Those provinces are facing significant headwinds. They might not necessarily be in a recession, but they are definitely struggling. The big worry on our radar at the moment is Vancouver, it’s basically only real estate that’s fuelling growth in Vancouver.”
Even though there are no hints or signs of any upcoming crash that will occur, for now, Miron still warned about the new foreign buyers’ tax in B.C. The chances of the U.S. Federal Reserve increasing their interest rate, as well as the slow performance of oil will contribute to determining the outcome of Canada’s assets’ real value in due time.