Vancouver real estate bubble as some people are calling the Vancouver real estate market is it really set to crash or it is just speculations. There are some trade analysts saying that even though the Vancouver market is the fastest growing real estate market in entire Canada, but as they say that all good things do not last forever so maybe as the statistics say that this trend cannot continue for a long time.
The Steady Rise
The market has been on a steady rise since 2008 but after the 2012 games the prices in the real estate market dropped sharply.
The market bounced back but many experts believe that the market rise at such an alarming rate is not sustainable and the market may crash at anytime.
There are many warnings like the weakness in China and Hong Kong market, slump of the Canadian dollar and also the fall in the oil prices along with the new rules in down payments will surely affect the real estate.
In December 2015 the markets saw exponential growth in the Canadian real estate market mainly due to cost of homes increasing by ten percent from the previous year and going up to the unsustainable price of one million in real estate.
The prices in some areas increasing by over twenty five percent, this inflation in prices is making it extremely difficult for people to keep their properties thus increasing the number of homeless people and also preventing the young generation to buy new homes.
The increase in the construction of condominiums and decrease in the number of low rent dwelling units is also creating a problem as the condos are built for investment purposes but the people who actually live in them are not being able to pay the rent which is increasingly getting out of reach in their current income bracket. In Vancouver more than 50 percent condo owners plan to sell their units within 5 years of purchasing.
The Real Picture Now
The rising demand of premium residences has also started a bidding war among buyers and more sales are being done above the listed price and the buyer may end up paying twenty to thirty percent more for such properties.
The market is being lead by profit making only and those who are in need of affordable houses are being left out and there is no relation between the income of people and the market.