Vancouver Home Power Team

Over the past several months, we have all read the newspaper stories about the decrease in prices in the Vancouver Real Estate Market, especially for Downtown Condos, see today’s Vancouver Sun story. The problem is that they do not consider how long most people hold their properties.

These stories are somewhat frightening.  I live in Yaletown in a Condo that has dropped in price from where it would have been this time last year, but it is still likely worth more than when I purchased it.  I also have no plans to sell for the next few years; so by the time I am ready to list my property with a realtor, I believe that prices will return. 

Many Real Estate Lawyers and Notary Publics I speak with comment that they have several files where people have entered contracts on new projects and now want their deposits back.  Because of the rapid rise in real estate prices over the past few years, investor purchasers (flippers) have been a significant part of the market.  Real Estate is not a commodity like we see traded in the stock market.

For First Time Buyers and other Home Owners, they are purchasing a property to live in as their principal residence.  They use their asset as a home. The time horizon they are looking at for ownership is several years; so while prices may not be at the bottom now (or they may be) real estate should be considered a way building wealth over time.  Realtors and Mortgage Brokers can provide valuable information to their clients in this regard.

Vancouver is a great place to live.  In an ever changing world; Vancouver provides a moderate climate, clean drinking water, insignificant pollution and there is little risk of hurricanes, wild fires, tsunami, or other natural disasters.   Vancouver is a safe place to live.  For this reason immigration to the region continues.  I believe that in the long term, real estate in Vancouver will continue to be a valuable asset.