Metro Vancouver Real Estate Rebound
During the first quarter of 2010 the average home price in Metro Vancouver saw the largest jump of any market in Canada leading some experts to say the rebound is an unrealistic and even irrational response to current market conditions.
On the east side of Vancouver the price for a detached bungalow reached $674,180 during the first few months of 2010. This represents a 25 per cent hike from the same period of 2009. A condominium on the east side jumped around 29 per cent to $402,000. On the west side, the gains have been similar. The average price for a bungalow on the west side dropped to about $950,000 at the beginning of 2009 but had seen a 21 per cent increase on this to $1.15 million in the first quarter of 2010.
Many experts see these jumps as highly irrational: an overreaction based on fear of a poorer market. As the market has started to turn around, buyers have been somewhat quick to act. At the moment, sales figures do not appear to represent the reality of real estate in Canada. Averages prices are up across the board while some markets have obviously seen greater improvement.
Even national averages have risen around 11 per cent in the past year and the average price of a detached bungalow in Canada is nearly $330,000 and averages are up for all property types as well. Part of this market stimulation is based on concerns about raising mortgage rates and stricter lending practices. Over the next couple of years the real estate market will likely level off while other economic factors, like jobs, catch up.
In the Lower Mainland, there has been a recent bump in the number of new listings and this should hopefully limit bidding wars that are driving prices up. In fact, March saw a 60 per cent jump in new listings compared to a year ago. Yet, average prices have risen steadily as well. It will be interesting to see how the market reacts in the second quarter of 2010 but most experts are predicting a cooling period.
On the east side of Vancouver the price for a detached bungalow reached $674,180 during the first few months of 2010. This represents a 25 per cent hike from the same period of 2009. A condominium on the east side jumped around 29 per cent to $402,000. On the west side, the gains have been similar. The average price for a bungalow on the west side dropped to about $950,000 at the beginning of 2009 but had seen a 21 per cent increase on this to $1.15 million in the first quarter of 2010.
Many experts see these jumps as highly irrational: an overreaction based on fear of a poorer market. As the market has started to turn around, buyers have been somewhat quick to act. At the moment, sales figures do not appear to represent the reality of real estate in Canada. Averages prices are up across the board while some markets have obviously seen greater improvement.
Even national averages have risen around 11 per cent in the past year and the average price of a detached bungalow in Canada is nearly $330,000 and averages are up for all property types as well. Part of this market stimulation is based on concerns about raising mortgage rates and stricter lending practices. Over the next couple of years the real estate market will likely level off while other economic factors, like jobs, catch up.
In the Lower Mainland, there has been a recent bump in the number of new listings and this should hopefully limit bidding wars that are driving prices up. In fact, March saw a 60 per cent jump in new listings compared to a year ago. Yet, average prices have risen steadily as well. It will be interesting to see how the market reacts in the second quarter of 2010 but most experts are predicting a cooling period.
posted by VancouverResidence
