The UDI (Urban Development Institute) had member lunch, some 1,100 attendees yesterday. The captains of the real estate industry gave speeches. The general consensus is that prices will be up sharply this year, as they have already surpassed pre-crisis levels.
The real estate market in any city does not stay down for ever. However Vancouver has shown itself to be quite resilient. The Vancouver real estate market corrected in September 2008 but had the shortest stagnation period of any city in North America. In fact, Vancouver has had the quickest recovery of any city in the World.
Its recovery can be attributed to several reasons.
1. Strong immigration to B.C. (Led by Chinese, the strongest growing economy in the world.)
2. Recovering U.S. economy. (Highly doubtful as explored in my previous post)
3. Recovering B.C. economy. (Supported by new immigrants but jobs and overall consumer spending continues to suffer.)
4. Inter migration to B.C. (Driven by favourable market conditions in B.C. and deteriorating market conditions at home)
5. The HOT money from Asia wants to be here. (Stable banking system, world’s best place for living, safe haven for refugees/criminals because of human rights laws)
6. Shortage of inventory for sale. (More buyers than sellers. Sellers market.)
7. Shortage of land. (Properties in prime location are limited.)
When it comes to Vancouver, fundamentals do not apply. After all, this is a market supported by people several times richer than locals. As long as the rich continue buying, it justifies the argument that this city is just that special and good times last.
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