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Vancouver Real Estate Soars Despite U.S. Market Troubles

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By : M Shane    99 or more times read
Vancouver real estate is renowned for its resilience, and has been among the few growing markets during the recent downturn in the global economy. Construction throughout the city and metropolitan region has continued at a steady pace, and sales have generally been seen to buck the trend by remaining buoyant and, perhaps more significantly, holding value.

As home sales continue to cause serious concern throughout markets in the U.S., the Canadian Real Estate Association reports positive news following a surge of interest in multi-million dollar properties in the Vancouver area. Indeed, the increase has been so notable that it has affected the national average price forecast. Among other factors, CREA's chief economist Gregory Klump attributes the unexpected rise in the luxury home market in Metro Vancouver to ongoing foreign investment, according to a report published in early May 2011.

Of course, this has led to concerns from local residents who fear that soaring prices will ultimately prevent them from being able to afford houses within the Vancouver area. Worries of increasing house taxes too, are prompting some locals to voice their fears that too much foreign investment in the Vancouver housing market will ultimately have a negative impact on British Columbia's economy.

Overall, even with the encouraging sales figures coming from Vancouver, CREA forecasts that national sales activity in 2011 will experience a slight decline of 1.3% from 2010 figures. Signs indicate that a notable rebound can be expected in Canadian property sales during 2012.

Average home prices throughout the country are expected to see a rise of 4% this year, with further increases in 2012. This is a marked improvement on earlier forecasts and clearly reflects the significant effect that recent sales in Vancouver's high-end homes is having on the national market. However, Klump expects to see a national increase in general activity and an easing off in the luxury residential property market throughout Canada in coming months. He adds "That said, foreign investment in Vancouver residential real estate is showing no signs of slowing, so it seems likely to remain a prominent market feature for some time."

So, as the U.S. real estate market continues to suffer, with home prices spiraling ever downward, things are looking positively encouraging north of the border. CREA are confident that no Canadian provinces will see declines in home sales during 2011, in keeping with recent years. And, as Vancouver's economy and employment figures continue to improve, we should be in for a few more years of comfortable growth.

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