According to the latest British Columbia Real Estate Association from their second quarter results; the housing demand in Vancouver has increased to a new high that hasn’t been seen 2007.
BC’s housing increase has been rising everywhere but the two leading locations are Vancouver and the Fraser Valley says the report. Both of these locations have shown an increase of 16-17 percent in sales and are not expected to decrease anytime soon.
More and more families are choosing to live in multi-family housing units in Vancouver due to increasingly high costs for single family homes. This will lead to less construction for single family homes in the city but even more for apartments and multi-family buildings in the next coming years.
The average price for a home in Vancouver is proposed to shoot up to $870,000 as there most likely won’t be as many being built in the next year, and the average price of an apartment in Vancouver is also proposed to shoot up to $465,000. These apartment costs are up 1.4 percent compared to the past few years.
The housing costs are also expected to increase to almost $900,000 by 2016 states the board. Putting the costs for apartments and homes continually on the rise.
The report also goes on to say that “market conditions in Vancouver have improved as a result of consumer demand rising faster than the number of homes for sale. While the market is exhibiting sellers’ market conditions overall, there is variability according to product type and its location in the region.”
Also stated in the BCREA report when describing foreign investment is the “relatively small, niche market” from that sector, but though small it remains persistent.