Vancouver Housing Market Rises Again
Posted on 06/30/2023
One of the world’s richest, or perhaps overpriced, housing markets is surging again. Experts point to a shortage of new houses and a belief that interest rates will come down in Canada as the reasons for Vancouver’s resilience.
The Bank of Canada remains in a tightening cycle. Inflation has fallen to 3.4%, still too high for most residents and the target rate of 2%. Inflation in 2022 went as high as 6%. For those who have a loan at a low interest rate, selling is out of the question. Rates in Canada are now 4.75%, with actual mortgages, consumer loans, and credit cards being much higher.
CPI Inflation has risen 17% over the last 5 years. To buy a modest house in Vancouver today, a list price of CA$ 1.3 million would be expected. Home prices are up over 1% in the last month. Condos will set a buyer back over CA$ 800,000, and in many cases over CA$ 900,000.