Metro Vancouver Still Remains ‘Unreachable’ Amid Dropping Property Prices
Despite the drop in real estate prices, Metro Vancouver remains an "unreachable" property market among global markets.
Global News Canada reported that despite this fact, there are still those who are willing to take the risk in buying from a supposedly "cooling" market. With that, buyer demand has also been slumping, but analysts are wondering whether the region's real estate will ever be considered "affordable."
Tom Davidoff, assistant professor at the University of British Columbia's Sauder School of Business, said that Vancouver will never reach the levels of Manhattan.
He compared the market to London levels, although the UK suburb still has prices that are a bit above whatever property values they currently have. Even with the "cooled" markets, it's still a challenge for first-time buyers to buy their first property.
Even Vancouver citizens have confessed difficulty in buying houses from the place. Most of its citizens who were born and raised in the district have taken to searching for property outside the city, even beyond its suburbs. T
here are places that fall into their budget, but most of those have been well outside Vancouver-in places like Squamish.
Compared to other North American cities, the growth of the price in Metro Vancouver has shown "dramatic" expansion. Vancouver Courier reported that, compared with other cities in the US such as Los Angeles, New York, and San Francisco and Canadian cities Montreal and Toronto, home prices in the city have been rising at 316% since January 2000, a four-fold increase from modest values.
New York home prices have moved by just 103% in contrast, over double the ranges where the prices were in January 2000.
This was the median of the North American cities that were covered for comparison. Toronto, meanwhile, topped New York, posting a percentage hike of 240% during that 19-year period. These ratings were covered by the Canadian housing blog Better Dwelling.
Millennial citizens, only beginning to find homes for themselves in Vancouver, are the hardest hit by the price hike.
They have chosen to stay as close to the city center, where some of them may have found work. It's hard to keep the proximity, however, as the homes they are looking for are still just beyond the reach of their budget as well as Vancouver's outskirts.
Bidding wars have arisen, which has given the displaced a chance at owning a piece of otherwise unattainable property. However, many others still cannot save money, even if they need it for real estate down payments.