Over the last few years Canada has seen a boom in the real estate industry, and only recently has this demand begun to decrease. However, even among the drop in the housing demand across the country, there are still some areas where there is a shortage in supply. Of all of these places, there is no location where the real estate market is as hot as it is in the North Shore Vancouver area.
The Cooling of the Market
According to the Canadian Real Estate Association, the country experienced a drop in real estate demand of just under 7% over the past year – from June 2016 to June 2017. The reason for this decline in real estate can be blamed on the oversupply of available properties, which in turn, leads to a lower level of demand. And while the average property value in locations such as West Vancouver has dropped roughly 4% from last year’s numbers, this is still an astonishing 106% increase from the prices 10 years ago.
The North Shore Remains in High Demand
Unlike many of the other areas across the country that have experienced a decline in real estate demand, property in the North Shore Vancouver area remains in high demand. In fact, according to North Shore News, over the past year, the average price for a single-family home in North Shore has risen 1.2% to over $1.6 million. The primary reason that property values remain on the upswing is due to exceptionally low rates of vacancy. It has been noted that vacancy rates within the North Shore area run between 0.1% and 0.3%, and this has caused demand to remain at high levels. Not only are single family houses rising in value, but so are apartments. Since June 2016, the price for an apartment in the North Shore area has skyrocketed more than 16% to hit an average price of $528,000.
It is no secret that the real estate market in Vancouver is unique, and with so many different areas to live within the city, the fluctuations in demand are not surprising. As it has been shown, there has been a small decrease in demand for real estate within the city as a whole, but there are still areas that are bucking this trend. The North Shore region of Vancouver remains a hot spot in the real estate market due to its extremely low vacancy rates. And even if the demand in the North Shore begins to decline in the coming years, it will not fall far because of the limited space available.