Happy New Decade Vancouver!
Author: Meryl Hamdillah is a REALTOR with Sutton WestCoast Group and is an active community writer in Tri-Cities and Vancouver. If you are interested in a real estate or community topic in Tri-Cities or Metro Vancouver, feel free to call or text 604-307-9506
REBGV region Vancouver Decade Market Comparison of last 10 years:
Happy new year and new decade, Vancouver! Historical statistics helps us to summarize trends over the long term. So we take a look back at general trend numbers of the last decade. The upcoming decade will definitely be interesting and full of surprises over the short term especially as our mortgage and housing policies are adjusting for our market and economic conditions.
According to BCREA deputy chief economist Brendon Ogmundson, the year 2020 should see an increase of average residential benchmark prices of 3% or about the rate of inflation in BC.
2020 is a number that reminds us of perfect vision. But can anyone see what the new decade starting 2020 has in store for us? Don’t worry this is not a horoscope, it’s just a quick snapshot of the market one decade ago!
Just last decade in 2010, the benchmark prices of homes across of Greater Vancouver were as follows:
Detached Homes: $805,500; Town homes: $452,200, Condos/apartments $375,300, All property types: $570,800. Comparing the benchmark prices in 2010 ($570,800) and 2019 ($993,700), we see that there is an average increase of 7.4% per year over the last 10 years. Since benchmark prices were tracked 15 years ago, there has been an increase of 10.5% per year for real estate since 2005.
The Consumer Price Index rate of inflation in BC is at 2.2% . With an increase in real estate benchmark prices of 10.5% per year since 2005, this tells us that the average annual rate of return in real estate is 4.8x current inflation. This makes home ownership a safe investment on average over the long term.
Source: Consumer Price Index Stats Canada. Market data from Real Estate Board of Greater Vancouver.