What Can Affect the Vancouver Real Estate Market?

Tuesday, April 1, 2014

The Canadian real estate market, and to be more specific, that of Vancouver, can be very fickle and unpredictable at times. That said, there seem to be a few factors that can significantly influence the market and these things have remained constant throughout the years. Suffice to say, big changes in a particular city often have an effect on its real estate industry, either for the good or bad.
 
When it comes to Vancouver, job availability is one of the biggest factors that influence the prices of residential properties. The logic is simple: people prefer to buy, rather than rent, properties if they have the money and increasing their spending power also means that the demand for houses and condos for sale also increases. This factor is also affected by immigration, because the influx of people in a particular city also increases the demand for jobs. By combining these two factors, people can expect prices of Vancouver properties to increase if there is high migration and job availability.

Interest rates and bank regulations also play a role in shaping real estate prices, but the rate that these two can change is also unpredictable. If interest rates are high and banks are stricter in collecting payments, then it can be expected that people will have a harder time paying their mortgages, making it more challenging to own a real estate property.

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