Is Vancouver housing price really that out of reach comparing to the rest of the world?
Is Vancouver housing price really that out of reach comparing to the rest of the world?
According to the May statistic provided by the real estate board of Greater Vancouver, which everybody can read on my website at www.TinaMak.com under Global Market Update page, once again, it shows the sales volume is down around 30% comparing to May, 2007 but price in average is still up approx. 8% comparing to last May. With the continuous increasing inventories, we are happy to hear that we are now in a "Buyer Friendly Market". Buyer doesn't need to rush into making decision and there are a lot more choices out there. However, just to remind the buyer, well price good products still go fast and multiple offers still happening. Also, by waiting for the market to keep falling might not be a wise move. Spring and Summer are traditionally sellers favorite seasons to sell because of the nice weather. Therefore, inventory always higher this time of the year comparing to Fall. Nevertheless, with all the new completed projects flooding the market this year, this is why the market is doing what it is doing which is PERFECT time to buy. I personlly believe once the inventory get digested, we'll see the market changes again.
When I travel now, I like to talk to the locals and try to understand what their income level and living standard is in their city. Based on the report that I've shared with the audiences in the past, there are many evidents shown Vancouverites income is not much difference or we thought lower than other places outside Vancouver.
I'm hearing more and more from many parents concerning the Vancouver high housing price practically put their children unable to own their property especially a detached house. However, for those who is immigrants or have been travelling a lot would agree with me that Vancouver is still one of the few places in the world that we are still able to afford a detached house in the urban city regardless how much we complain about our prices. There are so many major cities in the world one has to be a multi millionaire to own a detached house, eg. Hong Kong, Tai Pei, Amsterdam, Stockholm, Mahattan, London, old Paris, etc. In order to own a detached house, unless the city has great infrustructure, one needs to commute at least 45mins and up away from the city. Therefore, residents in those cities are so used to raising families in apartments in the city for a long time. Living in a house is literally a dream until one retires and move to the suburbs.
Back to Vancouver, realistically, we can still purchase a detached house in Vancouver East, Burnaby, Richmond, New Westminster, N. Vancouver in way less than a million. Even in Vancouver West, West Vancouer, we don't have to be a multi millionaire in order to own a house yet. However, there are more and more people would choose to live in an apartment for security and recreation facilities reasons. Also, if they wish to go for a holiday, they don't need to worry about picking up newspapers or any junk mails but to lock the door and go with peace of mind.
Can my children afford to purchase a home?
First of all, I understand that some people do not like to pay interest to the banks. For those who can afford to pay all cash to buy a property will do so. Even when we have mortgages, we'll save as hard as we can in order to pay it off. Well, if you have a clear title home, this is the time for you to make use of your equity in your house by way of a line of credit to help your children with a down payment and to become a future home owner. I'll get into more details in my next blog.
