Vancouver housing sales hit record highs during real estate boom



Housing prices in Vancouver’s suburbs are soaring as sales volume hits record highs during the real estate boom.

The benchmark price for single-family detached houses sold last month in Tsawwassen, B.C., reached a record $1.17-million, up 41 per cent since April, 2015. Other suburbs that saw prices leap to new highs in the Real Estate Board of Greater Vancouver’s territory include Richmond, Ladner, Port Coquitlam, Coquitlam, New Westminster, Port Moody and Burnaby.

Those suburbs enjoyed percentage gains in prices that were higher than on Vancouver’s west side and east side, which have traditionally led the housing rally.

In Greater Vancouver as a whole, the benchmark price for detached houses surpassed $1.4-million last month to set a record, up 30.1 per cent from a year earlier. The benchmark price is a representation of the typical house in an area, providing a better barometer of real estate trends than average resale prices, according to the board.

The benchmark price for detached properties sold last month was $3.2-million on Vancouver’s west side and $1.35-million on the east side, both up more than 28 per cent.

Sales volume set a record for the third consecutive month in Greater Vancouver. There were 4,781 transactions last month, up 14.4 per cent from April, 2015, and 41.7 per cent higher than the sales average for that month.

In the Fraser Valley Real Estate Board’s territory, east of Vancouver, the benchmark price for detached houses was $776,500 last month, up 30.4 per cent from a year earlier. The number of transactions set a record for the fourth consecutive month in the Fraser Valley.

In both Greater Vancouver and the Fraser Valley, March sales set all-time records for any month of the year. April tends to be slower than March for attracting buyers.

Fraser Valley board president Charles Wiebe said the robust B.C. economy, low interest rates, strong demand and limited housing supply are contributing to the region’s housing boom.

But Josh Gordon, an assistant professor at Simon Fraser University’s School of Public Policy, argues that foreign demand is the main driver of the residential housing bonanza, especially an influx of buyers from China.

While the Vancouver region is bounded by the ocean, mountains and the Canada-U.S. border, Prof. Gordon estimates that geographic constraints account for less than 30 per cent of the price surge in recent years. And he said the economy and low mortgage rates have little to do with the frenzy of real estate activity.

“This continuous flow of money from abroad, combined with inaction and disinterest on the part of Canadian governments, has created expectations of continuously rising prices,”, warning about a housing affordability crisis.

“The provincial government in particular has become hooked on the tax revenues and short-term economic growth that the housing bubble has generated.”

The seller’s market includes condos, which have jumped 20.6 per cent over the past year to $475,000 for the benchmark price in Greater Vancouver – relatively affordable for the region.

“But beware: Most of these condos will not be family friendly, so they only offer a short-term option for many,” Prof. Gordon said.

Also on The Globe and Mail



B.C. budget aims to cool roaring real estate market
(The Globe and Mail)

Courtesy: The Globe And Mail

9 thoughts on “Vancouver housing sales hit record highs during real estate boom

  1. It seems the exact same headline and story could have been written for the last year or couple of years for Vancouver. Prices will just keep going up and up until they don`t. Certainly wouldn`t want to be a buyer here unless I bought largely in cash and was well within my affordability. Thus, expect more and more foreign (Chinese) hot money flooding in while local Canadians are shut out.

  2. The census for 2030 a 1 Million increase in population expected and projected……­…
    Please leave my comments this time 🙂 Have a great day!

  3. Sickening. BC Liberals sidestepping responsibility to take this matter in hand (they’d rather the cash in hand). Sickening the federal Liberals doing nothing, rather consider this “boom” a perk for the economy than what it really is: a devastating blow to working urban families.

  4. In the election companion, JT talked a lot about housing affordability and how his government (if elected) is going to improve it particularly for middle-class income people. Since this government came in October we saw housing affordability issues have become much worse particularly in the biggest and main two areas in Canada (Metro Vancouver and Greater Toronto areas): 30 % to 40 % increase of home prices in a matter of weeks and huge shortage of homes and rentals.big joke..!!!!11
    Dirty practices like shadow flipping by realtors, money laundry use of buying great number of properties, and thousands of empty homes owned by foreign investors have contributed hugely to skyrocketing prices and huge shortage of homes in Lower Mainland, Metro Vancouver and even in the Island in BC. The BC and Federal governments are very well aware of that.

    Water , food, and housing are most important necessities in life . If the BC and Federal governments keep ignoring the housing crisis , it will have much more tragic impacts on the BC society in the future.
    The history will definitely record what these politicians have done to this province.

    http://thetyee.­ca/News/2016/05­/02/Clark-Donor­s-Tied-Real-Est­ate/

    http://bc.ctvne­ws.ca/real-esta­te-loophole-let­s-wealthy-buyer­s-save-millions­-in-taxes-1.287­4603

    http://vancouve­rsun.com/opinio­n/an-affordable­-housing-manife­sto

    http://www.toro­ntosun.com/2016­/04/20/canadas-­subsidizing-for­eign-millionair­es

    http://www.toro­ntosun.com/2016­/04/29/foreign-­buyers-create-r­eal-estate-bubb­le-risk

    http://www.mone­ysense.ca/spend­/real-estate/8-­factors-that-re­ally-mess-up-va­ncouvers-real-e­state-prices/

    http://bc.ctvne­ws.ca/shortage-­of-affordable-h­ousing-behind-s­ome-sex-for-ren­t-schemes-1.288­1502

    http://www.time­scolonist.com/n­ews/b-c/vancouv­er-real-estate-­advertised-in-s­hanghai-first-1­.2230013

    https://www.biv­.com/article/20­16/4/citys-risi­ng-real-estate-­costs-make-hiri­ng-entry-l/

    http://vancouve­rsun.com/news/s­taff-blogs/who-­can-we-trust-on­-vancouver-real­-estate

    http://www.thep­rovince.com/vid­eo+tackling+mon­ey+laundering+f­raud+evasion+va­ncouver+real+es­tate/11821480/s­tory.html

    http://www.otta­wacitizen.com/b­usiness/real+es­tate+scams+need­+high+tech+atte­ntion+vancouver­/11821831/story­.html

    http://www.theg­lobeandmail.com­/real-estate/th­e-market/chines­e-investment-in­-canadian-real-­estate-set-to-i­ncrease-in-2016­/article2962800­5/

    http://www.whic­hmortgage.ca/ar­ticle/money-lau­ndering-risk-fo­r-vancouver-rea­l-estate-204673­.aspx

    http://www.theg­lobeandmail.com­/news/british-c­olumbia/bc-hous­ing-affordabili­ty-crisis-is-re­gionwide-says-d­avid-eby/articl­e29284884/

    http://www.vanc­ouversun.com/bu­siness/blame+po­liticians+metro­+vancouver+hous­ing+price+crisi­s/11797902/stor­y.html

    http://www.news­1130.com/2016/0­2/24/concerns-t­he-local-red-ho­t-real-estate-m­arket-is-killin­g-businesses/

    http://www.theg­lobeandmail.com­/opinion/plenty­-of-blame-to-go­-round-in-real-­estate-crisis/a­rticle29384402/­

  5. Water, food, and housing are most important necessities in life . The governments kept ignoring the housing crisis which has extended to the suburbs, until it starts to have tragic impacts on the society. Its highest impact will be much higher on this young generation and the coming generations to come. The history will not forgive what these politicians are doing to this country . What is more, the flooding of foreign buyers keeps increasing in large masses. They are trying to buy all good houses listed in the market and with much larger than the listing prices not only in Vancouver but also in other parts of Lower Mainland . Governments know very well that dirty practices like shadow flipping by realtors, money laundry use of buying great number of properties, and thousands of empty homes owned by foreign investors have contributed hugely to skyrocketing prices and huge shortage of homes in Lower Mainland, Metro Vancouver and even in the Island.
    In the election companion, JT talked a lot about housing affordability and how his government (if elected) is going to improve it particularly for middle-class income people. Since this government came in October we saw housing affordability issues have become much worse particularly in the biggest and main two areas in Canada (Metro Vancouver and Greater Toronto areas): 30 % to 40 % increase of home prices in a matter of weeks and huge shortage of homes and rentals.big joke..!!!!

    https://ca.news­.yahoo.com/fore­ign-buyers-crus­hing-home-dream­s-vancouver-can­ada-b-133008569­.html?nhp=1
    http://thetyee.­ca/News/2016/05­/02/Clark-Donor­s-Tied-Real-Est­ate/

    http://bc.ctvne­ws.ca/real-esta­te-loophole-let­s-wealthy-buyer­s-save-millions­-in-taxes-1.287­4603

    http://vancouve­rsun.com/opinio­n/an-affordable­-housing-manife­sto

    http://www.toro­ntosun.com/2016­/04/20/canadas-­subsidizing-for­eign-millionair­es

    http://www.toro­ntosun.com/2016­/04/29/foreign-­buyers-create-r­eal-estate-bubb­le-risk

  6. The sell of Vancouver to Asian buyers continues.

    I’m sure the usual unpaid “experts” will soon weigh in on this blog to tell us that China has nothing to do with our housing market, that millenials aren’t leaving the city, that other cities are still much more expensive (not true) and everything is just peachy. They will then head off to check their very fat bank accounts, and we can go back to putting our heads in the sand and doing nothing.

  7. 10 years of “bubble predictions” still unanswered. It is simple, strong LOCAL and foreign demand, stable government and health care system, decent climate, limited geography of Vancouver, immigration from around the globe and Emigration from within Canada, low unemployment, and finally, RECORD LOW INTEREST RATES for a decade…….as long as all the factors exist, the market will continue to stay hot.

  8. Chinese money has been flooding into Vancouver since the 1980s. Since the 1980s, Vancouverites have complained about the cash injection, while reaping the benefits of this foreign investment (pulling out equity from their homes and and spending to substitute for poor wages overall in the province). The money that has flowed to Vancouver from China will continue to flood in, money is like water – it follows the path of least resistance. The upper middle class in China will continue to dump money in stable economies such as Canada, the UK and the US – and the laws make investing in Canada easy and attractive. So, prices in Vancouver will only accelerate – as more money will pour in from the seemingly endless supply of rich Chinese (China creates tens of thoursands of new millionaires every single year). If only a small percentage wealthy Chinese invest in Canada (1%) – Canadian real estate would still experience growth simply due to the size of the market (1.4 billion people and more billionaires and millionaires than Canada could ever dream of). China is 40 TIMES the population of Canada, so there are more wealthy chinese than the ENTIRE population of Canada! So, Canadians should STOP complaining, stop the racist and comments – and simply accept the reality. This isnt a new phenomenon – and really has been happening for over 30 years! Why not put your energy (message to Canadians) to creating a better business environment, and try to compete with Seattle and California for the tech sector (you need to invest in universities and create a more buoyant environment for business). Look at the film sector – its big business in BC MOSTLY because of tax breaks. Why not incentive other sectors? Once you create jobs and a healhty business environment, wages will go up. Also, there are OTHER cities in BC, outside of Vancouver. You dont have the “right” to live in Vancouver – its for the rich. Why not move to Kelowna or other cities in the province? You want to buy a home in Vancouver? Start a tech company, make your fortune – then buy one! Otherwise – live in your rental in Whalley, and please, stop complaining – its unbecoming.

  9. Let me Unbelievable that even the CBC continues to spread propaganda that anyone opposed to the offshore massive money laundering into Vancouver RE is racist. On CBC radio, the Sunday Edition, a segment was on race and the Vancouver housing obscenity occurring. The CBC was totally sympathetic with those in the RE industry interviewing an architect and how the architect sees no problem in Vancouver except that the white people are racists. Then they interview a white person complaining about all the Chinese people in her neighbourhood. Just unbelievable that the CBC has been corrupted by the RE industry

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