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Vancouver Real Estate Market: Bubble or Best in World?
As you may already know, the Vancouver real estate market is one of the most expensive on the planet. Over the last 20 years, the real estate market in Vancouver has been steadily climbing to price levels only rivaled in Hong Kong.
Large amounts of wealthy foreigners, particularly from China, have bought up Vancouver real estate over the last 20 years like it’s going out of style. And who can blame them? It’s one of the most desirable cities to live in on the planet. With world class skiing and great beaches on the Pacific Ocean only 30 minutes apart, the city has it all. I’m biased of course, having been born and raised in Vancouver, but who can argue with me? Just take a look at the skyline:
Of course, there are pros and cons to every situation. My parents generation has made a small fortune on the homes they purchased back in the 70’s, 80’s and 90’s. Many of them are up 1000% or more since purchasing their home in the mentioned decades. However, the issue is with the younger working professionals of Vancouver. People in the age range of 30 to 40 years old are nearing their peak earning years and can’t afford much more than a one or two bedroom apartment if they want to live in the city (and even then they are leveraged to the hills). The problem for the working class in Vancouver is their salaries are no higher than any other Canadian city, yet the price of real estate is triple or quadruple just about every other city in the country. The median salary in Toronto, Ottawa, Edmonton and Calgary is higher than that of Vancouver, yet home prices, energy and in most cases, taxes, are much lower. Consider this: the median income in Vancouver is $54,687. The average home price in Vancouver (including condos) is $752,000. And unlike most other Canadian cities, Vancouver doesn’t have an established highway going through it, making traffic a nightmare and living in the suburbs (where prices are slightly cheaper) a tough commute.
While I love Vancouver and believe its real estate deserves a premium price to the rest of the country, a bubble is forming in this real estate market that will pop if China’s economy significantly slows.
I found a rather humorous blog about the subject and I think you’ll get a laugh out of it - see below:
Absurd Vancouver Property of the Week
This week’s absurd property came to my via my friend Lyndsay Prentice. Described on MLS.ca as “…a rare find potential redevelopment opportunity in the heart of prestigious Kerrisdale. Walk to 41st shopping, Pt Grey Secondary, community centre. Close to Crofton,” surely, this one has it all:
Listing price: $2.1 Million
Wow! They are practically giving it away! And, really, you get two homes for the price of one here. The upstairs has 2 bedrooms and 1 bathroom over 800 sprawling square feet. In the basement, another 2 bedroom, one bathroom apartment that, without a doubt in this coveted neighbourhood, you could rent out for at least $2000/month!!
You could buy this mansion in Aurora, just outside Toronto:
…or this luxury home in Melbourne, Australia:
…or, you could purchase the home of our fellow Vancouverite and former star of “Beverly Hills 90210″, Jason Priestly. His mansion in Tulca Lake California is on the market for $2.1 million:
Aside from the fact that each of these properties are amazing in their own right…the weather in each of these cities is actually above 10 degrees, unlike the frosty temperatures we awoke to here in the “most liveable city in the world.”
Vancouver…are you f*%#ing kidding me??