Blog by Andrew Peck

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Is Real Estate a Good Investment Right Now?

Is Real Estate a Good Investment Right Now?

During the past year, we’ve all been bombarded with continuous bad news about falling property prices and the poor state of the real estate market.

Does this mean real estate is no longer a good investment?

Here’s some big picture data to help you decide.

  • If you had bought a detached home five years ago (January 2004) in Metro Vancouver for the benchmark price of $461,370 that home would now be worth $659,638, an increase of 43%.
  • If you had bought an attached townhome for $292,240 in January 2004, your home would now be worth $425,309, an increase of 46%. 
  • If you have bought a condominium for $220,650 in January 2004, your home would now be worth $334,602, an increase of 52%.

If we look back 10 years, the data supports even great benefits.

  • If you had bought a detached home in 1999 for the benchmark price of $337,540, the value of your home had grown by 95%.
  • If you had bought a townhome in 1999 for the benchmark price of $215,060, the value of your home has grown 98%.
  • If you had bought a condominium with a benchmark price of $150,740 the value of your home has grown by 122%.

The Average Price Chart produced by the Real Estate Board of Greater Vancouver tells us the whole story. Although real estate is a cyclical market, the trend tends to be upward, over the long term.

Vancouver Average Housing Prices

Will prices hold stable in the Metro Vancouver area?

Metro Vancouver’s population growth is forecast to continue to be the one of the fastest growing areas in North America, according to urban land economist David Baxter.

Baxter expects the population of the metropolitan Vancouver region to grow to 3.3 million inhabitants in the next 20 years. This means more than one million newcomers are headed our way.

The 2010 Winter Games is also expected to place us on the international stage drawing attention from potential immigrants, worldwide.

Vancouver prices are now nearing cyclical lows. If you take the opportunity to invest today, five, 10 or 20 years from now from now you’ll be looking back on a great lifetime investment.

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