Buy or not to buy?
By ebizniz on May 29, 2007 - 12:49pm
The pre-sales and assignments of new condos in downtown Vancouver are showing prices between $500 to $750 or more per square foot. Vancouver prices are way higher than new condos selling in downtown Toronto. In comparison, a home buyer can buy a new condo in downtown Toronto for $300 to $350 per square foot.
The run up in the house prices in Vancouver over the past 5 years is unprecedented. Many housing market analysts are cautious that property values could be over-priced. The hot housing market has drawn in a lot of buyers. Speculators and investors are capitalizing on the market buying up presale new condos with the hope of selling them for a profit later.
Real estate prices in Vancouver have reach a level when home affordbility becomes a problem. Increasingly, more people are questioning the ability of the market to sustain the present pace of price increases. The fundamentals supporting the present real estate boom in Canada are strong. The rate of price appreciation will moderate in the next few quarters due to moderation in demand for housing.
The housing market will be more balanced, and for home buyers contemplating whether to buy or not to buy, their decision should be based on their own comfort level.
