There is no doubt that homes for sale in West Vancouver are booming – the average price of real estate is more than $ 2 million for a typical, single-family home. But one question arises, does that “boom” sound like an explosion? OK, okay – the bubble hasn’t exploded yet, but there is a lot of controversy among Vancouver residents about the stability of the flying housing market.
New York, San Francisco, Los Angeles, and Singapore have all been subject to this type of housing market, and in all cases the bubble has exploded. As house prices rise by almost the same prices, economic growth is hard to keep up with the pace. Eventually, city dwellers can no longer afford housing.
Vancouver is a coastal city with limited growth. The city area is surrounded by water on all sides, and the area below West Vancouver is slightly further away from the city center due to the country. Limited growth means that competition in the retail space is high. Since 2002, the price of various households has increased by almost 300%.
In addition, in West Vancouver (and the entire Metro Vancouver region), the focus is on rich foreign investment. The perceived threat is that immigrants, immigrants, and foreign investors are buying property at exorbitant prices while not living in these residential areas. The locals are embarrassed and have started pressuring local government to provide them with protection that will prevent inflation dramatically. And there is a strong case to be made regarding such protection.
Despite strong economic growth that has allowed citizens to access local housing markets to date, the acquisition of West Vancouver housing has helped the market significantly exceed national standards. Compared to other major markets in Canada and West Vancouver, we see that prices have risen almost 120% since 2002. In particular, housing prices in Calgary increased by 133%, Montreal by 124%, and Toronto by 115%.
So what does this mean for West Vancouver, and Vancouver as a whole? Be prepared for a real boom, because this bubble will explode. The rise in foreign exchange means there is a great deal of interest in residential areas so prices will continue to rise. However, with fewer people living in these areas, and access to less expensive local Vancouverites is crippling, the economy will definitely suffer. Ultimately, the ability to buy real estate in West Vancouver will be a dream come true for foreign investors. Eventually, demand for housing will decrease, and prices may drop.
Yes, there is an increase in housing sales in West Vancouver, but that prosperity may be greater than the economic downturn!
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