Vancouver Housing Prices Reach Record High
The British Columbia government undertook with great ordeal to put up permanent strategies that would keep the market prices down and stabilize it but the Vancouver real estate market proved these efforts futile. On the other hand, they made the real estate prices spiraling high causing the measures put in place by the B. C. to appear temporal. The normal Vancouver for investors, vendors and consumers is finally back like a rumbling crash of waves due to the soaring prices beyond their reach. A release from the Real Estate Board of Greater Vancouver insinuates that the rising of home prices in the city has been effected by the fears from buyers.
The real estate markets have been showing varied statistics as prices continue to rise and homes listed in the market increased. Naturally, overall sales have still not paralleled the spikes.
The average home price in Vancouver climbed to 8.8% in May, this was higher than that of the previous year. Furthermore, a 2.8% increase in the month of April registered the highest record that year.
Conversely, Vancouver was not a loner in this enigma, as San Francisco ran into the same problems showing an increase of 4.84% in the previous year.
The current increase in demand for condos and townhouses has energized the real estate market as maiden buyers encounter more difficulties in purchasing affordable homes.
This incessant and cumulative demand has therefore occasioned a huge surge in prices, hence low priced home owners have capitalized on the situation to sell at exorbitant prices as first-time buyers go all out to find properties.
Notwithstanding, this high demand does not underscore a lack of sufficient supply of listings. Vancouver however, remains ever strong with adequate inventory. Despite a minimal drop of 3.9% in new listings, in the region, the total inventory is very satisfactory.
Vancouver’s new listings and sales in comparison have been fluctuating at a minimal rate with months of April and May either registering an increase in sales, though negligible, or not at all. Under normal circumstances, a decrease in sales is relative to the high pricing of homes which makes it difficult for the middle class income residents to participate in any realty trade.
Naturally, a huge increase in new listings accompanied by low sales, should influence the market to decrease prices. Nonetheless, this is not the case in Vancouver due to high demand for affordable homes, pushing the home prices further out of reach.
J C Loum
