Real Estate market meltdown in Vancouver? What do recent events mean for Vancouver condo owners?
Given the recent financial and real estate market meltdowns, it's no wonder people are concerned. Understandably anxiety abounds but do the headlines coming from the USA translate directly to our market in Downtown Vancouver? The answer is yes, to a certain extent, but Vancouver is not the USA. The following are a few of the areas in which Vancouver differs:
- Our banking system is structured more conservatively
- There is less "speculation" in the Vancouver market than in some other previously frothy US markets such as Miami
- Canadian banking exposure to "sub-prime" issues is estimated to be a maximum of approx 4% of Canadian mortgages as opposed to some 40% in the US.
- No matter how you slice it, Vancouver is a very attractive place to live and immigration numbers continue to support growth.
- Vancouver is a link to the Far East and a favourite destination for many investors and new citizens from China and Hong Kong, both of which continue to prosper and grow.
- Canada in general, and specifically Vancouver real estate, is considered a relatively safe haven for investment, given the volitility of "comparable" real estate markets globally.
- Vancouver is still considered relatively under-priced when compared to many other international cities
- Vancouver real estate prices have softened but they haven't plunged like so many other real estate markets recently have.
Below is the 31 year Average Price Graph for real estate across the Vancouver area:
For PDF of this graph: 2008-08_Average-Price_Graph.pdf
It doesn't take a genius to see that prices have come off of the highs reached some time around March of 2008 but it's also clear that the market has not imploded. As counter-intuitive as it sounds, it's a good time for both Buyers and Sellers.
Opportunity in this new Market
If you're a Buyer, there are some great deals to be found now. You have price, time and selection on your side now.
If you're a Seller: If you are an investor and you've been in the market a while, you've made fantastic gains so it's a good time to cash out and look at other markets while the Canadian dollar is strong. If you're looking to sell and move up there's lots of active inventory to choose from now.
Visit Shaun's Blog often and watch upcoming episodes of CONDO TV for more on the current market. Contact Shaun any time to discuss Buying or Selling your downtown Vancouver, or Coal Harbour condo property.
Feel Free to contact Shaun anytime. All the best.