Housing trend since 1977
From 1997 to 2001
Greater Vancouver's last bull market started towards the end of 1984. and lasted until the end of 1994. Home sales dropped yearly, along with home prices and reached a bottom around 1998. View the price chart here.
From 2001 to 2007
When buying interest returned to the market in 2001, you will notice that there was not enough supply of homes to keep pace with demand. New home construction was pushed to the limit, as strong demand for housing continued un-abetted until the end of 2007. From 2001 to 2007, home prices more than double in values.
The correction in 2008
The credit crunch in 2007 and early 2008 caused a major pull back in buying interest, resulting in home prices declining 15%. The panic of 2008 was quickly replaced by market optimism, when interest rates were slashed from 4.5% in Nov, 2007 all the way to 0.25% in Apr 2009.
Will home prices collapse?
There are great concerns in the market place that home prices are too high. There are major concerns on higher interest rates, pending HST which will affect the housing market and the weak Canadian economy in the midst of a world wide recession.
The metro Vancouver housing may be at the cross road. Market confidence is the key. Home prices are hinging on what happens after the winter Olympics, interest rates, HST implementation and the economy.
View Vancouver homes for sale.
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