Vancouver’s real estate economy is very important for us to observe and understand. Why? It is 25% to 50% more expensive than that of Toronto. It is our future in 5-10 years. It is a totally unaffordable city in which to own real estate. This has been the case for 25 years. It continues to be such a city, and year after year, its property values rise.
Over the last year, much has been written about the total demise of this expensive marketplace, all of it has turned out to be just wrong. Unfortunately, economists need to do more than just look at statistics. They need to actually spend time in Vancouver and understand the reasons for its pricing situation. It is a small landmass with nowhere to grow, and Central Vancouver will continue to be the most desirable place to live in Canada.
NEWSFLASH! Vancouver home sales rose 40% in July from a year earlier. FORTY PERCENT! If this doesn’t show you up, nothing will. Go back to your analysis and look at the world beyond your office and computer. Average prices rose 13% to $738,730. 2946 homes were sold on MLS versus 2098 the year before. This is a tiny market compared to Toronto where typically 7000-10,000 homes sell per month.