The big question many people in Canada are asking is how much does it cost to get a property in Vancouver real estate? For years people have speculated on this topic but the answer might not be what you are thinking. The problem is the statistics don’t add up. When comparing prices in Vancouver with other major cities there is a startling lack of consistency. This explains why so many people have been forced to settle for less when purchasing a house or renting an apartment here in the city of Vancouver.
How did Vancouver reach this point with home prices so high? There are many contributing factors that have contributed to skyrocketing prices here in the sixth largest Canadian city. This infographic s purpose is purely to tie the dots from historical demographic trends, current government policies, and other external forces that have had a hand in shape today s hot Vancouver real estate market. By putting all the pieces together you can understand why home seekers are being priced out of the market and why there has never been a better time to purchase a house in Vancouver.
One thing that is contributing to the skyrocketing real estate prices in Vancouver is the lack of available residential land. Although Canada is one of the world’s fastest growing countries the overall land mass is becoming smaller. This means that the supply is lower than the demand. When you factor in the influx of people who are constantly on the move you end up with a situation that has created a shortage of detached homes in the vancouver real estate market.
The problem is that while all these people are flowing into the city the supply is decreasing meaning the price of detached homes has to stay high. It is hard to blame the government for not building more houses because it would make more sense economically. If the government were to increase the supply they would raise the price of detached homes but since they don’t seem to be interested in doing that there is little the average person can do to keep the price of their detached home where it needs to be.
This brings us to the third force that is contributing to the skyrocketing prices in the Vancouver real estate market. That would be the relatively recent increase in the amount of foreign money that is pouring into the country. While Canada has traditionally been a very stable economic unit the past decade or so there have been many fluctuations in the level of foreign investment. For some time it appeared that there was an equal level of investing from American investors as there were Canadian investors.
However, during the last several years the level of interest from the United States began to decline. At the same time the country began dealing with the consequences of the collapse of the American housing market. The result was a lot of American money moving into the country. Some of this was local real estate, but most of this was international money flowing into the country. This influx of investment has tremendously increased the demand for Vancouver real estate, while simultaneously driving the prices down.
Now the main question becomes how can people who are not residents of Canada get involved in the market? The answer is that most people who are looking to purchase any type of property in this country will be required to have a resident investor status in place. Once you have your investor status you will have access to hundreds of thousands of dollars worth of free government money that will be made available to you. This is money that never has to be paid back and is just waiting there to be spent on whatever you choose to purchase with it.
Now you know why so many people are flocking to the Vancouver real estate market. You also know why the prices are the way they are. If you are in the market you now know what to expect as well as to some extent you know how to protect yourself from getting a bad deal when you decide to purchase any type of property. The best thing to do right now is sit back and enjoy the ride while everyone else makes a killing in the market. The best advice you can take is to buy what you can afford right now, because by the time the government has everything fixed you will most likely be able to move out of your current residence and purchase something much larger than what you had in mind.