Through out the post-2008 economic woes of the world; real estate markets have been a barometer of economic conditions for the local area. Worldwide, real estate bubbles and bursts have been indicative of economic stability and even employment opportunities as the housing market in most areas is so deeply interlaced into the economic conditions.
Vancouver, BC has been seemingly impervious to the bubbles and bursts the rest of the world has been balancing up until now. This strong economic area has held the housing prices steady or increasing even in some of the worst of the world’s economic times.
There have been questions lately in real estate industry about the steady rise in Vancouver real estate prices. The concern is that the steady and lately significant increase in the housing prices in the Vancouver Real Estate Market could be indicative of a pending bubble.
There are two sides of the opinion on this.
The Real Estate Industry stays steadfast in their conviction that the Vancouver Real Estate Market remains stable and unlikely to bubble. They state there are a number of reasons for the higher price level of the Vancouver market. The long-standing financial stability of Vancouver, including the growth markets of finance, film production and technology coupled with a strong work force has helped with the real estate market. In addition, the interest in the area by foreign investors keeps interest rates low and prices higher. The lower level of flipping speculation in the Vancouver market has also helped keep the prices higher.
On the flip side, supporters of the Vancouver real estate bubble movement believe interest rates are bound to rise eventually, and the average home versus income ratio is higher in Vancouver than anywhere else in Canada. Eventually, prices are bound to settle and correct.
Vancouver has long been a contender for the Best Places to Live Top Five ranking. The natural beauty and geographic proximity to both Asia and the US make Vancouver a desirable market for the holiday home, retirement buyer and investment property market. The cosmopolitan sophistication of the diverse cultures and cuisine of the area has made it a great location for the world to travel to. The availability of the Port and the active living opportunities has attracted businesses and work force.
The combination of cultural diversity, natural beauty, active living, strong employment markets, industry growth and economic stability make Vancouver a very desirable place to live. The desirability of the Vancouver market will remain stable, so correspondingly will the interest in the local real estate market.