A city nestled in between mountains, surrounded by the Pacific ocean and all things nature.
No doubt it’s a beautiful place to live for the fortunate few that have a chance to call this place home.
But behind the beauty, there’s a real big problem.
Vancouver’s housing market.
You can’t seem to talk to anyone in Vancouver about its looming housing crisis without hearing the word “gentrification” peppered throughout the conversation.
So how did this happen?
Well, it’s not like it happened overnight.
Actually, Vancouver’s housing market really started to get dicey back when teased hair and shoulder pads were in and the term “millennials” was out.
You know Huffington Post right?
Of course you do.
They wrote a great article documenting Vancouver’s housing price increase in the 1980s.
You can also see the spike in housing sale prices in the chart below:
So let’s fast forward to the 2000s…
Last year Vancouverites banded together to create the Twitter hashtag “#donthaveamillion” (which seems to still be going strong) in expression of their dissatisfaction of needing a cool mill to purchase any home in the city.
And while the above chart clearly shows that Vancouver saw its major housing price increase back in the '80s, it doesn’t mean the city still isn’t dealing with some serious issues in 2016 and likely for the next 10 years.
In a report released earlier this year, PwC Canada published their ‘Emerging Housing Trends in 2016’ which showed some not-so-surprising trends in Vancouver’s home sale prices.
As detailed in the chart below, Vancouver leads the nation in housing home sale prices which has gradually been increasing from 2013 to 2016.
The British Columbia Real Estate association released a report this year that showed a record number of homes being sold in B.C. last year - a total of 12,650 homes sold surpassing the previous year’s record of 11,683 homes sold.
Canadian Home Sale Prices (100k)
What does this mean for the future of Vancouver's real estate market?
Business In Vancouver documents that by 2018 the average home price in B.C. will increase by 3%.
And, based on the above projections we can assume a couple of things:
- Vancouver’s housing prices will continue to climb
- Real estate agents will need to be even more resourceful than ever to obtain the inventory to actually make sales
Now, you may be wondering why we would advise real estate agents to be more resourceful to make sales?
CBC reported that at the end of March 2016 condos and townhouses sold in Vancouver's downtown listed around $600k were being sold much faster than new listings coming onto the market. The same could be said of homes closer to the $700k range in Vancouver's east side. Leaving us to believe that homes available to be sold are selling faster than the homes being added as new listings.
Do you think Vancouver real estate agents should be worried?