We’ve been reading about a housing bubble on a regular basis for the past 10 years, and yet the market has increased.
In the past few months, bubble articles seem to be more prominent. Is this time going to be different? Is the end of the run-up in real estate prices near?
“We’re not in a housing bubble,” said Helmut Pastrick, chief economist with Central 1 Credit Union.
“While Metro’s housing market has seen the result of the recent 15-per-cent foreign buyers’ tax, demand for property will continue over time because of our region’s constrained land supply.”
Pastrick explains for a bubble to occur we need to be seeing significant speculation.
“Currently, speculation is limited. The market is instead being driven by supply and demand fundamentals,” said Pastrick.
Pastrick points out that we’re consistently being told by demographers and government that about 1.2 million newcomers are headed here by 2041. This will require more than 575,000 new housing units according to Metro Vancouver.
“This indicates increased housing demand in a land-supply constrained region,” said Pastrick.
For information, contact Andrew Peck, vice-president and general manager, Royal Pacific Realty Group @ firstname.lastname@example.org.