With an unprecedented escalation in demand and property prices, Vancouver Real Estate Market has become real hot news. As a result of overwhelming demand, the housing prices are touching the sky. Real estate marketers are constantly trying to identify the main reasons behind this extraordinary surge of demand.
Cameron Muir, chief economist for the British Columbia Real Estate Association suggests growth in population and job opportunities, strong consumer confidence, deluge of foreign immigrants and migration from other parts of the country to be some of the potential reasons behind the elevated housing needs in Vancouver.
A Sales Analysis of the Vancouver Housing Market
The year 2016 has seen an all-time sales record in the Vancouver Housing Market. The housing sales graph in Vancouver has constantly been rising over the past five months. Whether it is detached, attached or apartment properties, there has been a remarkable growth in the sales.
In comparison to the last year’ sales figures, beginning of the year saw a 34.1% growth in detached properties, 35.5% in apartment properties while a 16.4% in attached properties. March has set an unsurpassed record in the history of Vancouver Real Estate Market. Being the highest selling month; an increase of 24.8% in the sale of detached properties, 38.4% increase in apartments and 8.9% increase in attached properties is recorded by the Real Estate Board of Greater Vancouver.
The record levels have been persistent across the month of April. Residential Properties sales in the region saw a rise of 14.4% in comparison to the last year’s sales figure. The sale of detached and apartment properties saw an increase of 9% and 33.4% while the attached properties saw a decrease of 11.5% compared to the sales in April 2015.
Greater Vancouver 5 Year Trend - Source: rebgv.org
As the demand continues to rise across the Metro Vancouver city, the sales are no less behind. The sales listing ratio (i.e. 61.7%) for the month of May 2016 suggests a sellers’ market for rest of the year. The sale of detached properties saw an increase of 8.2%, apartment properties 34.4% and attached properties 2.9% in comparison to May 2015 sales.
Hike in Vancouver Housing Prices
With the astonishing rise in housing demand, the property prices in Vancouver are expected to increase by 25% in 2016. The average home price is said to be around $767,000 for this year. The Multiple Listing Service price will witness an increase of 24.6% in Greater Vancouver, 22.9% in Fraser Valley while 16% in Chilliwack.
The interminable housing sale and capital outflow are identified as the primary reasons behind the hike in property prices. However, to make home ownership within the means of Vancouver citizens, the province’s 2016 budget has come up with a few measures to deal with the problem at hand; amendments in the property transfer tax and reporting the nationality on buying a house are some of them.
Torrent of Foreign Real Estate Companies in Vancouver
While the government continues to build on their international trading partners, critics firmly believe that foreign real estate companies are a major reason behind the jump in housing prices. With the rising controversies over the Asia trade mission, the supporters justify themselves by claiming it to be a business trip and a potential way of opening new horizons for the commercial real estate market of B.C. and Vancouver.
With a boom in the real estate market, incessant buyers’ demands and shooting sales, the real estate sector has a phenomenal employment potential. These factors are ultimately resulting in a critical need for trusted real estate professionals. We, at Sutton Centre Realty provide world-class real estate training and help you build a flourishing career in real estate. We are the most reputed and reliable real estate agency in Canada. Along with unique learning sessions and providing a real world experience to our employees, we work round the clock to deliver exclusive real estate solutions to our valuable clients.