The strength of the housing market has been a particularly common discussion topic in Canada over the last two decades, largely because there have been amazing increases in the average costs of homes. Throughout the 1990s and 2000s many long-time homeowners saw the values of their homes rise nearly 100%, and many people have been suggesting that the real estate market is forming a large bubble that will eventually pop. Vancouver is right in the middle of this trend, as it is experiencing some of the highest housing cost increases on the continent and has become one of the most expensive places to live in the world. Still, statistics indicate that Vancouver’s housing market is continuing to rise, with annual increases well over the national average. Despite an international recession and rising mortgage rates, Vancouver’s housing market continues to appreciate considerably year after year. Historically speaking, interest rates are still quite low. There is also a steady population influx into Vancouver, which artificially inflates housing demand over national levels. Considering the strength of the economy in British Columbia and the steady growth in the housing market, it is unlikely that the ‘bubble’ is going to crash any time soon.
