Experts Predict Continued House Price Increases in 2010
From the beginning of 2008 to the end of 2009, the housing market in Vancouver has seen remarkable price increases and most evidence suggests this trend will continue into 2010. In fact, market research forecasts a 7.2 per cent increase in housing prices this year.
The strength of the real estate market in 2009 was surprising but welcome. There was much more confidence from both buyers and sellers than anybody would have predicted at the end of 2008. Even during typically slow periods, like before Christmas, there was increased activity prompting some experts to announce an end to real estate woes in the Greater Vancouver Regional District (GVRD).
Take for example, detached bungalows. In Vancouver, these properties sold for an average of nearly $830,000 in the final months of 2009 which constitutes and 11.4 per cent increase from the year before. Likewise, standard condominiums throughout Vancouver reached an average price of $452,750, an 11.8 per cent from the final quarter of 2008 to that of 2009. Even the typical 2 storey home saw a market increase in prices averaging $917,500, a year-over-year increase of nearly 10 per cent.
As mentioned, many experts are predicting continued success in 2010 with the highest increases expected to top 7 per cent. These increases will likely be driven by a couple of factors. First, there is renewed optimism not only in the real estate market but the Canadian economy as well. And secondly, there are a large number of interested buyers from a wide range of backgrounds throughout the Vancouver market. While a slower market is expected during the Olympic Games in February, most believe January and the months following the Olympics will benefit from increased activity. Some are even saying that we should look forward to a surge following the Olympics because of possible increased interest from foreign investors.
On the whole, the Canadian residential real estate market should set a strong pace in the first 6 months of 2010. An improving economy, including better employment figures across the country, along with government stimulus spending and low interest rates will fuel demand. Indeed, the end of 2009 has provided considerable momentum to the 2010 market through reduced mortgage costs and other stimulus factors. A marked increase in demand has also surprised some real estate experts as many were predicting slower activity toward the end of 2009 and beginning of 2010.
At the moment, we are also suffering from a bit of a lack of available properties for sale which has lead to greater demand thereby increasing housing prices. But the second half of 2010 will likely see more stabilization in the market. Prices will continue to rise as demand is high and supply is low, but newer properties on the market and the likely increase in interest rates will eventually balance out the rising home prices.
During the recession, some parts of Canada were hit harder than others. The Toronto, Lower Mainland of BC, and Vancouver real estate markets suffered considerably during the recession but they have also been the markets that have bounced back most robustly. Significant gains have been documented in these regions in a number of areas including the total number of sales and average prices across all housing types.
While the Canadian economy has yet to recover completely, there are obvious reasons for optimism. Many sectors have seen marked drops in employment which has certainly caused ripples throughout many other industries, namely real estate. Nevertheless, the real estate markets have weathered the storm quite well and will likely see continued improvements as the economy gets back on its feet.
The strength of the real estate market in 2009 was surprising but welcome. There was much more confidence from both buyers and sellers than anybody would have predicted at the end of 2008. Even during typically slow periods, like before Christmas, there was increased activity prompting some experts to announce an end to real estate woes in the Greater Vancouver Regional District (GVRD).
Take for example, detached bungalows. In Vancouver, these properties sold for an average of nearly $830,000 in the final months of 2009 which constitutes and 11.4 per cent increase from the year before. Likewise, standard condominiums throughout Vancouver reached an average price of $452,750, an 11.8 per cent from the final quarter of 2008 to that of 2009. Even the typical 2 storey home saw a market increase in prices averaging $917,500, a year-over-year increase of nearly 10 per cent.
As mentioned, many experts are predicting continued success in 2010 with the highest increases expected to top 7 per cent. These increases will likely be driven by a couple of factors. First, there is renewed optimism not only in the real estate market but the Canadian economy as well. And secondly, there are a large number of interested buyers from a wide range of backgrounds throughout the Vancouver market. While a slower market is expected during the Olympic Games in February, most believe January and the months following the Olympics will benefit from increased activity. Some are even saying that we should look forward to a surge following the Olympics because of possible increased interest from foreign investors.
On the whole, the Canadian residential real estate market should set a strong pace in the first 6 months of 2010. An improving economy, including better employment figures across the country, along with government stimulus spending and low interest rates will fuel demand. Indeed, the end of 2009 has provided considerable momentum to the 2010 market through reduced mortgage costs and other stimulus factors. A marked increase in demand has also surprised some real estate experts as many were predicting slower activity toward the end of 2009 and beginning of 2010.
At the moment, we are also suffering from a bit of a lack of available properties for sale which has lead to greater demand thereby increasing housing prices. But the second half of 2010 will likely see more stabilization in the market. Prices will continue to rise as demand is high and supply is low, but newer properties on the market and the likely increase in interest rates will eventually balance out the rising home prices.
During the recession, some parts of Canada were hit harder than others. The Toronto, Lower Mainland of BC, and Vancouver real estate markets suffered considerably during the recession but they have also been the markets that have bounced back most robustly. Significant gains have been documented in these regions in a number of areas including the total number of sales and average prices across all housing types.
While the Canadian economy has yet to recover completely, there are obvious reasons for optimism. Many sectors have seen marked drops in employment which has certainly caused ripples throughout many other industries, namely real estate. Nevertheless, the real estate markets have weathered the storm quite well and will likely see continued improvements as the economy gets back on its feet.
posted by VancouverResidence
