Vancouver Real Estate Blog

British Columbia's Economic and Fundamental Business Indicators -part 2/4

How did we get here? Everyone seems to want to know. From March of 2008 we saw a downward trend. In other countries and other parts of the world, we saw massive declines in housing prices-namely the the United States for example. We all saw and witnessed the collapse of the Financial Institutions and Wall Street.

But how did we survive so well? That answer put simply is in how our economy works with the rest of the world and frankly how it works independently at the same time. British Columbia unlike the rest of Canada and the USA has a different and flexible market place. Where there are the mega corporations and an inflexible corporate structure and a philosophy of "same old same old". BC has a very young and on the most part, a very small corporate structure, where flexibility is everything. This in turn allows these smaller companies to adjust in a moments notice causing less people to be tossed out of work, as these people are represented by families and are not just numbers to a big corporation. The entrepreneurship is alive and well here in British Columbia.

So, as the unemployment rate rose around the world dramatically. BC while experiencing some of that, was never  hit as hard as everyone else. That being said, we also had an influx of migration over the year of approximately 60,000 people expected for the 2009 year end, historically low interest rates, inventory levels of homes starting to falling, pent-up demand from buyers, a massive new housing start decline all added to produce a demand that out paced supply on re-sale properties. That's economics 101.

So where do I see price levels reaching? Let me take you back 14 years ago when I wrote an article to the home owners of Dunbar. Back then prices for a standard lot sold for about $450,000.  I predicted home prices surpassing the $1 million dollar mark. Yes I got a lot of calls telling me that would never happen and even some saying "It Would Not Happen In A Million Years". Well as time went on the market told the real story. So predicting the future home prices, I would say given our geographical location, lack of usable land, the natural beauty, the mountains to the north, the mildest climate in canada, the Baby Boomer's, economic ties to China, Japan and other Asian Pacific country's, population growth, employment opportunities and life style. I would say that in 10-20 years from now what we are saying are extreme prices for homes in the area, will be a drop in the bucket in years to come. Do not forget the power that the media has and over the 2010 Olympics their will be billions of advertising messages going out to the world about Vancouver and British Columbia as a whole. Do you remember what Vancouver was like before Expo?? Now think of how far we have come from those days. This is just the beginning. Like everyone says.... Hold onto Real Estate. Because if you are not in, then you are out.....

Vancouver Olympics - disruptions in moving around

All forms of vehicle traffic will grind to a hault during the Olympics. Moving vans will be heavily restricted from parking as the city has developed many area as non stop parking even commercial parking zone areas. So if you are moving in February call your moving company to see what plans they have to get you in or out of your home. Make the necessary and appropriate arrangements.

For information about traffic restrictions, please visit here.

For a traffic map of downtown Vancouver, please visit here.