The Vancouver real estate market is hot! Unless you’ve been living on Mars for the last few years, this shouldn’t be news to you.

At the same time (people on Mars excluded) you’re probably aware that the global economy has been a little unstable recently.

All this adds up to uncertainty for those wondering if they should make a purchase in Vancouver’s hot market now or if they should wait to see if the bubble bursts.

But the latter attitude assumes that there’s a bubble in the market in the first place and this is itself a very contentious issue.

Cameron Muir, Chief Economist of the BC Real Estate Association, questions this attitude in an article published on CTV’s website earlier this week.

He points out that the average home price in Metro Vancouver is being skewed by massive price increases for detached homes in Richmond, West Vancouver, and the West Side. Prices have skyrocketed by nearly 80 per cent over five years and 27 per cent in the past year alone. We’ve heard these stats before, but they never cease to amaze us!

While that’s all quite impressive, the average home in Greater Vancouver has increased by only 5 per cent this year.

“We had a financial crisis, the largest we’ve seen since the Great Depression, we had an ensuing global recession, and if that isn’t a trigger or a tipping point for any kind of over-inflated market to see a major correction, I don’t know what is,” Muir said in the CTV article.

How about putting that in English doc! Well, if there were a bubble in the real estate market, if the market was really due for a drastic correction, it would have already happened considering the global economic circumstances.

We know there will be more bubble talk in the future, but for all those puzzled by the Metro Vancouver market, consider yourself more well-informed about the situation than ever before.

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