Since the real estate market crash in 2008 it’s been a somewhat rocky road for the real estate industry in Canada, but how rocky that road is depends on where you’re living. The Vancouver market has really done quite well to recover, taking only around two years to bounce back to the all-time highs that were experienced just prior to the crash, and now average home prices are hovering around that level. So what is the current outlook for the Vancouver market?
Vancouver Real Estate Market
Supply and Demand Whether you’re debating the real estate industry or any other industry, supply and demand is usually the driving factor behind the economy. If there are too many homes listed for sale and not enough buyers, the market becomes stagnant and hence prices will drop. On the flip side, when there are too many buyers and not enough homes for sale prices can be inflated because we end up with bidding wars – when multiple buyers want the same home. This scenario sounds good for those people who are selling, but overall it drives up prices well above the average and can ultimately have a negative effect on the market.
The West Vancouver Real Estate Market
This is exactly what’s been happening in the West Vancouver real estate market during spring 2011. Homes have been selling way over the listing price (sometimes as much as $300k higher) because multiple buyers wanted to buy the same home. This brings the average property price up even higher in this already exclusive municipality of Vancouver. But this type of market is not sustainable and should soon even out.
The North Vancouver Market
Though the neighbouring municipality of North Vancouver isn’t seeing quite the same highly inflated sale prices, some homes are attracting multiple buyers and are selling for over asking price. The real estate market in North Vancouver is far more steady though, with the average prices staying closer to the all-time highs of 2008.
The Outlook for the Real Estate Market in Vancouver
The Real Estate Board of Greater Vancouver (REBGV) publishes monthly statistics based on the information provided by its 10,400 or so members. Factors such as the number of listings, number of homes sold, and prices of homes sold are considered, allowing the Board to compare information month on month, and year on year. The REBGV then publishes those statistics so that we can figure out what the Vancouver real estate market is doing.
Figures published in July 2011 show that overall the market is balancing out. This is because over the past few months there have been more sellers than buyers and so prices even out as supply and demand level off.
So what does this mean for anyone looking to buy or sell a home right now? Unless you’re hoping to buy in West Vancouver or the west side of Vancouver (where prices are rising way above the average for Vancouver), a balanced market should indicate a good time for buying or selling.
