Greater Vancouver is one of Canada’s — and the world’s — most expensive housing markets, but 40 years ago it was a very different story.
In 1977, the average sale price of a home in Greater Vancouver was roughly $90,000, according to the Real Estate Board of Greater Vancouver’s (REBGV) chart that highlights average home sale prices from 1977 to 2017.
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Fast forward to 2017, the benchmark price for all property types was $1,050,300.
Although home prices have increased significantly in the last 40 years, REBGV President Jill Oudil says price growth has been steady and can be attributed to BC’s strong economy.
“[Home values] do tend to reflect how the economy is doing. Overall, we have a great economy and it’s certainly been strong, right now it’s incredibly strong,” Oudil tells BuzzBuzzNews.
The past 40 years have been characterized by price fluctuations, but in 2008 to 2009, prices nosedived significantly across all property types thanks to the worldwide economic crisis.
However, in mid-2009, home prices for all property types rebounded and trended upwards once again.
In 2016, prices, especially in the detached market, reached record highs in the hot market before declining mid-year.
Prices began to fall immediately following the implementation of Greater Vancouver’s 15 per cent foreign-buyer tax, which was introduced in August 2016. However, as seen on the chart, prices rebounded shortly after in the beginning of 2017.
Along with growing consumer confidence, Oudil says supply played a key role in rising prices.
“We have had population growth, very steady economy, very low unemployment, it’s a combination of factors. And the biggest factor is the fact that our supply is low versus the demand that we’re currently seeing,” she says.
Looking ahead to what to expect in 2018, the REBGV president says any change to supply this year and in 2019 will be “paramount” for the market.