What is making the Vancouver market so strong?

The Vancouver market has been booming for the last few years. Currently, as prices reach the peak of affordibility, the market is leveling off a bit - much to the relief of prospective buyers. In the next year, we'll likely not be seeing the double digit appreciation levels that have been the norm in recent past, but the prices are still climbing steadily and don't show any signs of slowing. In this entry, I'll cover several factors of the demand for housing that has made the market strong, and that will likely keep it heading in the right direction.

Vancouver is a relatively young world class city. We are possibly the most diverse city in one of the safest countries in the world. (And, as any true Vancouverite will tell you, we have the best weather, food and lifestyles in the whole country too) Furthermore, we were voted the #1 city in the world to live in by the Economist this year. People from all over the country and world are flocking here, and they all need somewhere to live. The more demand there is for any product, the more expensive that product will become - homes are no exception.

But it's not just those coming here that suddenly need to buy. BC's current population has become much more interested in purchasing homes in the last few years. With the low interest rates, and the newer 5% or 0% down mortgage options, purchasing has become much more accessible. BC also currently has one of the lowest unemployment rates of all time, currently down at about 3%, so more folks simply have the money to invest.

The low unemployment rate is driving more companies in our booming economy to import more employees into Canada to fill their positions, so it takes us back to the immigration point. I read an article recently stating that one company in Whistler, before this year had only ever needed to hire about 100 people from overseas to make it through a winter. This year they had to hire 3 times that amount, just to fill vital positions.

There is currently no indication that interest rates will be going up any time soon, many financial institutions actually foresee rates dipping a it in the near future. BC's industries are growing stronger by the day - there's little chance our unemployment rates will change drastically any time soon. Vancouver will continue to grow, and be a great place to live - which will only be highlited by the 2010 Olympics. (Stay tuned for my article next week on how the Olympics affected the Real Estate market in Sydney, Australia).

It is for these reasons that I firmly believe that based on the rising demand for housing alone, the Vancouver market will remain strong and continue growing for several years to come. It's still a good time to buy and invest, and that won't be changing any time soon.

Please feel free to contact me with any questions.