Some thought that the pandemic was going to be the pin that pricked the housing bubble in B.C. and throughout Canada, but it seems it is still pushing through to new highs. There are bidding wars going on again with people paying hundreds of thousands of dollars over asking price for homes that they want.
You might even have the funds and credit available to make a purchase and still be struggling in the current climate to find something, you might even just give up with all of the bidding wars going on right now once again.
Canadian home sale prices have once again hit new highs, and especially in B.C. they’ve had a record-breaking start to the year.
With so many who are looking for something affordable and being pushed further outward into other regions away from the city, or thinking they might never be able to afford something, it’s made the issue of real estate a hot topic once again in the news.
The more unaffordable that real estate in Vancouver becomes then the more we can expect this to become a driving voter issue as millions are already concerned with their standard of living throughout Canada and are hoping that things are somehow going to get better in the future.
Many young couples and families, individuals living in Vancouver today, even those with degrees who are working full-time and earning 70-80k per year they are feeling pessimistic like they might never be able to own a home.
The income needed for detached home in Vancouver is estimated to be around 200k or more as many detached homes are over $1 million.
The average apartment could also easily be 800k to $1 million or more.
The average income is around $72k according to stats can data from 2015, and that means many households cannot afford to live in this region.
It isn’t just Vancouver that is seeing high real estate prices, consistently being called a real estate bubble, one that some are now questioning if it might ever pop. It the real estate bubble doesn’t pop then what does that mean for the future? Various solutions have been proposed and nothing has seemed to help the problem in the last several decades, prices just keep going up.
Home prices have increased significantly and for many this means they have no hope of ever owning something of their own. They could look for an apartment or townhouse etc, but many are wanting the freedom that comes with having a detached home. In recent years we’ve seen laneway houses start showing up in Vancouver, giving property owners another opportunity to try and monetize their space with a tiny home environment that they rent out.
These small laneway houses don’t seem like a long-term solution to address the huge problem that so many are facing which is a real estate market that they cannot tap into no matter how hard they work or how much they sacrifice, they cannot keep up and that doesn’t seem sustainable for the long-run.
Is this really going to be a housing bubble that never pops? Even if it does, will it be down for that long and how much might it decline? It doesn’t seem like any significant changes are being made right now to try and address this issue and bring more balance to the market.