The question on everyone’s mind that is searching for a home is: why are houses so expensive in Vancouver? After all, the real estate market in the rest of Canada is lagging quite a ways behind, making finding a decent sized and priced home a breeze for first time and experienced buyers, both. Those who are in Toronto and Vancouver are seeing the frustrating fact that house prices are skyrocketing with no sign of coming back down to Earth any time soon. Looking for a home in this are is easy, in the sense that there is plenty of real estate on the market, but it’s also hard, because majority of the homes – if not all of them – are out of the range of most people.
When you’re shopping on a budget, it becomes more of a chore than anything fun. House shopping is the same way, especially because it is – quite often – a life long investment that will bite you big time if it turns out that it wasn’t the best idea in the world. For those that are in the predicament of life simply costing too much to be enjoyable, this hike isn’t doing anything at all to help. So, why are the prices you high, you ask? There are several reasons, all linked together.
Firstly, supply and demand. As hopeful buyers populate the area and search for a way to put roots down, Vancouver real estate agents are finding them homes that meet their criteria without straying too far from the mark. As more jobs became available, more people flooded into the busy Vancouver area, and houses started popping up everywhere. Real estate agents had a ball with it, but it cause a lot of problems when the price started to rise as the need great more urgent and larger in size. When the prices got too high, many families and young professionals were forced to turn to apartment rentals, causing a crisis there as well.
Now, well after the point when people thought the price would start to fall back down to normal rates, the number continues to rise and the epidemic of finding a permanent, affordable place to live is something that is causing everyone panic and terror that forces many people to simply turn to the outskirts and consider a longer commute.
Another cause to the market being so highly priced is the inflation that is being caused by the rich Chinese that are taking advantage of the great exchange rate to purchase property in the busy locations so that they can make some money off it for themselves. While this is all above board and legal, technically speaking, it is a sneaky form of money laundering and it’s been causing problems for everyone from the little man to the big company. The prices have zoomed higher, causing an overall 10% rise in the past year. The hope is that they will start to fall as the excitement wears off for the all of the rich people overseas, but there isn’t much hope as more international business and interest takes advantage of the great prices and available oppourtunities that give them a chance to make a name and some money for themselves.
Whether you are a seller or a buyer, the price of real estate is something that is incredibly important and critical in deciding where you live as well as how you live. No matter how low you put your standards, odds are, even the cheapest house with not nearly enough to make you satisfied with your purchase, is going to be within the range of your funds. It is a frustrating reality that is making itself well known to all sorts of people out there in the busy popular area. No one knows for sure when the rates will return to normal, but the sooner the better for those searching for a place to call their own.