Did Vancouver Real Estate really go up 30% in the last year? True or False?
I want show you the Real Market Change Facts.....
So when you hear Vancouver has gone up 20-30-50% in the last year .... that it is only certain markets segments.
Do checkout Homes, Condos and Townhome Markets that are showing very different market changes! Click Here
Here on the first Graph the Year to Date for the Top 50% Single Family Housing Market comparing all cities in the Greater Vancouver areas with East Vancouver setting the price increase record.
Do note that homes closer to Vancouver have gone up much more than the ones in the Chilliwack direction!
The Realties are that only one Market; Chilliwack had a fair year while many of the rest have had record increases.
Yes the Lower 50% of the SFD (Single Family Detached) Market in fact did go down a lower % on average than the Top 50%.
But please notice that the cities with the higher increases are in the Foreign Investment High Demand Areas. We estimate about 9+ Billion dollars was injected into these coastal cities in the last year. Most of this cash would come from Mainland Chinese Sources. Typically the cities located east of the Port Mann bridge are in a Job Market Dependent Market and have exhibited much more muted increases.
Average Graph :We just hate putting in an average price increase graph because it mixes the Top Cash Buyer Market with the Low End Job / Mortgage Market which are so dramatically different. Today we produce this least accurate market trend indicator because most consumers relate better to average market conditions. Please use the top50% or Lower 50% graphs for MUCH MUCH MORE accurate indications of market changes, trends and forecasts
The Condo Markets
Lets Look at the Top 50% of the Condo Market which for the first time in years have increases exceeding Canada's Inflation Rate (~2%).
What a difference from the Downtown, Coal Harbor areas to the rest of the Lower Mainland.
Average Graph :We just hate putting in an average price increase graph because it mixes the Top Cash Buyer Market with the Low End Job / Mortgage Market which are so dramatically different. Today we produce this least accurate market trend indicator because most consumers relate better to average market conditions. Please use the top50% or Lower 50% graphs for MUCH MUCH MORE accurate indications of market changes, trends and forecasts
Yes the Lower 50% of the Condo Market actually is FLAT on Average. .01% increase
Do notice that only a few cities even beat our expected 2% Canada Consumer Annual Inflation Rate.
Are Condos a good investment? When will they go up?
Low End Condos attract very little foreign investment. This Market is considered mostly a Job Driven Market!
The Condo market will recover and increase when Demand Increases eg: when we have stronger employment with good paying jobs. More Tim Horton jobs will not create many more home buyers.
The Condo Market is so easy to Over Supply with the many new high rises currently being developed this year. Single Family Lots ...in other words "DIRT" will continue to be the the one true investment that can rarely be over supplied.
The Townhouse Markets
Average Graph :We just hate putting in an average price increase graph because it mixes the Top Cash Buyer Market with the Low End Job / Mortgage Market which are so dramatically different. Today we produce this least accurate market trend indicator because most consumers relate better to average market conditions. Please use the top50% or Lower 50% graphs for MUCH MUCH MORE accurate indications of market changes, trends and forecasts
Once again the Lower 50% of the Townhouse Market is funded by mortgage money.
This lack luster performance in the Eastern Markets is indicative of a struggling job market.
Bill Coughlin
"Realtor, Real Estate Analysis & Lifestyle Consultant" Bill@CoughlinTeam.com
