Why housing is getting cheaper in Vancouver and how it will affect the market as a whole?
Housing in Vancouver has been the most expensive for several years, but this year the market of the megapolis is experiencing a decline in the value of objects. This situation can be traced throughout Canada, but is especially acute in this metropolis.
It should be noted that the supply at the market is increasing, which means there is a high probability that the cost per square meter will continue to decline. According to an analyst from a reputable company Royal LePage, in the last quarter of last year the price of housing in Vancouver fell by 5.2% compared to the same period in 2018. The reason for this picture, according to experts, is the change in the conditions of registration of mortgages, as well as an increase in tax rates.
The real estate market of the metropolis is developing unevenly. The cost of housing varies depending on the area of Vancouver, the type of object, its condition. The price of apartments in some parts of the megalopolis has increased, and in others it showed a decline. For example, apartments in Langley went up in price by 2%, cottages in Northern Vancouver went up in price by 0.4%, and in the West, on the contrary, the price of apartments went up by almost 17%, here you can buy apartments from $1 million. In the city a square meter of private houses decreased by 5%, and now this type of real estate will cost an average of 1.4 million dollars.
Premium class objects sank most of all. If we analyze the last year, throughout the entire period, the construction rate was regularly increasing. The dynamics was observed by 20% more than in 2018. Now there are about 28,141 new objects under construction. The burst of activity at the real estate market in Canada was caused by an increase in demand for both apartments and their rent. However, the supply will soon be able to satisfy the increased interest in housing.
Despite the decline in real estate prices in Vancouver, the city is still the leader in terms of housing costs in Canada. It is most expensive to ask for apartments with two rooms. Renting a one-bedroom apartment will cost more than 2 thousand dollars per month. The most expensive real estate is in the central area of Vancouver, where the price per square meter is about $ 50.
In general, the real estate market in Canada is a good investment option. The payback of residential facilities in major cities of the country is high, and you can count on a stable benefit.
The best investment at the Vancouver market will be economy class housing, as elite real estate is not so in demand. Besides, the segment in Canada is developing unevenly, and in some regions one can buy an apartment or a house at a rather low price.