Vancouver is notorious for it’s ridiculously high real estate prices coupled with a high standard/cost of living. Now, as we enter into the fourth quarter of 2012, could the Vancouver real estate bubble finally be bursting?
According to Garth Turner, a former Conservative MP, this is the case. He touches on the fact that there has been a steady decrease in prices and sales for the past 90 days and that a further 30-40% decline in prices can be expected over the upcoming months.
This past September saw housing sales fall 32.5% from the same time last year which indicates a clear decrease in consumer demand. Consequently, listings have also been significantly lower; a 6.3% decrease in listings from last September.
According to Eugen Klein, REBGV president, Vancouver’s real estate is now in a buyer’s market; the recent decrease in home sales differs from Vancouver’s reputation of high prices and high sales.Prices are, however, remaining firm, according to Scotiabank economist David Holt. Only time will tell to see if real estate prices will actually decrease significantly in Vancouver.
However, there is a counter argument. Condo marketer Cameron McNeill thinks that the housing market will have no problem sustaining itself. If people are willing to pay for a condominium or piece of real estate then the price will remain constant.
Further reading:
Brown, Chris. “Big Drop Predicted for Vancouver Real Estate Prices.” CBCnews. CBC/Radio Canada, 20 Sept. 2012. Web. 09 Oct. 2012. <http://www.cbc.ca/news/canada/british-columbia/story/2012/09/20/bc-housing-bubble-garth-turner.html>.
News, CBC. “Vancouver Home Sales Decline 32%.” CBCnews. CBC/Radio Canada, 03 Oct. 2012. Web. 09 Oct. 2012. <http://www.cbc.ca/news/business/story/2012/10/02/vancouver-housing-plunge.html>.
“Big Drop Predicted For Vancouver Real Estate Prices.” The Huffington Post. CBC, 21 Sept. 2012. Web. 09 Oct. 2012. <http://www.huffingtonpost.ca/2012/09/21/vancouver-housing-bubble-drop-predicted_n_1902334.html>.