Another month, another real estate record.
Across the region we are seeing housing prices rise and at the same time, the number of homes sold setting records. The demand for homes is just not slowing and it’s that demand that is pushing prices upwards. What’s behind it all?
The hot local housing market is driven by a strong economy, additional market influences and low supply. We’ve seen more than 3% growth in Greater Vancouver’s economy. Throw in low interest rates, a low Canadian dollar and an increasing demand on a low supply there is no reason to expect that the Vancouver housing market will cool in the near future.
Higher Than Average Economic Growth
Greater Vancouver’s economy is expected to expand by 3.3% in 2016, the third year in a row that growth will surpass 3%, says the Conference Board of Canada.
In comparison, the Canadian economy will have only grown by about 1.8 per cent per year over the same three year period.
Market Influences Driving Demand
And a strong economy is just one of the reasons our local real estate market is so hot. We are also enjoying these additional market influences, all of which drive demand for housing and help keep prices strong:
- Steady low interest rates
- Increasing population
- Low Canadian dollar
- Safe haven for investors
Simple Supply and Demand
Adding to those factors, our market is also experiencing a low supply of single family detached houses, constraining the supply side of the equation.
Until one or more of these major influences changes significantly, there is no reason to expect that our housing market will cool or change quickly.
Get Details Pertinent To Your Area
Different neighbourhoods and different housing types often experience different trends – you can contact me for the details pertinent to your area and your home.