Just how high can our condo prices go?
Vancouver condo futures: how much will a condo in Vancouver cost in 2011?
A report released by Genworth Financial Canada says not to expect condos to get any cheaper in Vancouver. However there is some good news for those wanting to get into the market, although the report predicts that condominium prices will keep rising through 2011 it doesn't predict any more explosive price increases.
The report predicts that demand in Vancouver's condominium resale market will slow along with the rate of new construction keeping supply ahead of demand into 2011. The result is that demand will continue to push prices up 4.4 per cent on average to the end of the decade.
This year the average condo price is $307, 305 and the report predicts that the average price will increase to $364, 689 in 2011. However Tsur Somerville, director of urban planning and real estate at the UBC Sauder School of Business, cautions that the report misses an unknown variable that could impact future condo prices. Tsur said the report fails to consider how many of the pre-purchased condos are investment units that will soon be back on the market creating a new balance between supply and demand. As we know, supply and demand determines the marketplace-so we will wait and see!
(All cited quotes & figures are from The Vancouver Sun)