The Canadian Real Estate Pages

There is good news coming from the real estate market out of Vancouver for 2011. You will not find the experts pronouncing great growth for this year, but there is a common thread running through many of the predictions that 2011 will be a solid stabilizing year. This prediction of stability is comforting after the crash of 2008 and the massive rebound of 2009 and then the decline of 2010. The Vancouver area should not experience in sharp decline as when the housing bubble burst in 2008. Nor will the area experience large increases in sales that occurred in late 2009 and early 2010.
In 2010, Metro Vancouver’ west side real estate market was strong and did show some growth. The growth was largely due to an increase in the number of sales of higher priced single detached dwelling homes. Average price of homes on the west side approached the $700,000.00 average selling price. The increase did drive many first-time home buyers out of this market. Sales are not expected to grow as rapidly in 2011, but neither is there any prediction to see in major declines.
The Fraser Valley area real estate market saw sales drop 11 percent in 2010 from what they were in the year 2009. Average detached dwelling price was at $500,000.00. The 2011 prediction is for growth in home sales in this area as the economy improves and more job growth occurs.
The Victoria area real estate market saw a 12% decrease in 2010, but sales are expected to rise by 6 % in 2011. The average price of detached single homes was at $495,000.00. This area is trending much the same as all locations in the Vancouver area.
Home prices in the Metro Vancouver and Victoria areas have been trending at record setting levels during 2010. There will be a slight cooling of these markets due to likely mortgage rate increases. The cost of carrying home rising will reduce the demand for detached dwelling homes. The bright side is that there is no sign of any crashing or bubble bursting.
The 2011 Vancouver real estate market will register gain and losses on both ends of the spectrum. Because there are fewer homes for sale, sellers will gain a stronghold to leverage the prices they want for their homes. Sellers could be the real winners in the 2011 market. The losers are going to be the first-time home buyers. With rising prices, even low interest rates will not be enough to put many first-time buyers into homes unless they have supplemental incomes.
Vancouver has the second highest cost of living of anywhere in Canada. The city and area still remain as an extremely desirable area to live. The popularity of the area and quality of life will continue to grow well into the future. Stability in the real estate market will give both buyers and sellers a chance to catch their breath and do some serious long-term planning to achieve their objectives.
Be wary of some of the internet predictions you will find concerning the real estate market. There are fantastic stories of major collapse and homes losing half their value. There are other stories that shout the market will be a bull market and you should rush in and invest all that you have and more to take advantage of the times.
The best thing to do is obtain a qualified and competent real estate agent. Choose your areas and home choices wisely. Stay within your budget without over-extending yourself financially. If you keep your feet on the ground, 2011 should be a great year to purchase real estate in the Vancouver area.