Q: Luxury home market booming in Metro Vancouver – is this true? Vancouver Sun article: Luxury home market booming in Metro Vancouver.
A: Absolutely! Luxury home market is booming in Metro Vancouver, and it becomes apparent once we look at the numbers. In Metro Vancouver, for example, 365 homes have sold at the price equal to or surpassing one and a half million dollar mark during the first eight months of 2005. In the same period of 2006, the number of such sales increased by 74.5 per cent and reached 637. Year 2007 was exceptional by all means – 976 homes have sold at the price tag of $1.5 million and more during the first eight month, 53.2 per cent more than in the same period of 2006. Naturally, even the luxury home market niche was somewhat affected by unfavourable market conditions in 2008 with “only” 843 home sales (13.6 per cent down comparing to 2007) reaching or exceeding $1.5 million sale price, but things quickly rebounded. From January to August 2009, 925 sales of homes worth more than $1.5 million took place, 9.7 per cent more than the same period of 2008. Finally, the first eight month of 2010 resulted in 1352 home sales valued at $1.5 million and more, 46.2 per cent up from 2009.
Now, if you haven’t fell asleep reading this, do you still doubt that Metro Vancouver luxury home market is booming? The fact is, people in the higher income bracket generally tend to buy pricier homes and, given their financial stability, are less sensitive to economic downturns. And, as Metro Vancouver is further becoming established as an economic and cultural bridge between East and West, there are more and more sophisticated investors from all over the world who are moving in and buying real estate here as part of their overall investment strategy.