Long acknowledged as the Canadian city with the most expensive real estate prices, Vancouver owes a significant fraction of its housing growth to the unrelenting demand for its downtown properties. According to an industry professional, however, Vancouver’s suburbia might soon hold parity with the city center’s homes as the most sought-after in the region.
Local realtor Adil Dinani said that this development can be attributed to Vancouver’s current status as a high-volume seller’s market.
“The price increases are migrating east for sure. People want a certain type of house so places like Burnaby and the Tri-Cities are really trending up. We’re seeing people in Vancouver and West Vancouver leaving those cities and moving east,” Dinani told Vancouver Metro
He added that the number of listings this year has dropped by 40 per cent. Meanwhile, data from Royal LePage revealed that the average price of a home in Vancouver went up by 21.6 per cent on a year-by-year basis for the first quarter of 2016, far beyond the growth rate experienced by other leading markets during the same period (9.3 per cent for Toronto and 3.3 per cent for Montreal).
The Royal LePage report noted that Vancouver’s growth has been buoyed by price increased in bungalows (25.7 per cent), two-storey homes (23.6 per cent), and condominiums (9.5 per cent).
Dinani warned that the futures of both the downtown area and the surrounding municipalities are still up in the air, though, especially since various quarters have already petitioned the federal and provincial governments to take decisive action regarding the city’s affordability issues.
“That’s a crystal ball question. It’s very challenging to predict what is going to happen. No one really has the answer. It’s really difficult for buyers, and as agents,” he said.