![]() ![]() These strong economic fundamentals result in confidence that will drive consumer spending on the biggest item on the household balance sheet: the home. BC's position as a gateway to those developing markets will require new infrastructure, creating jobs and economic activity. And Asia has a net demand for other resources, including natural gas and oil. In Asia, 20 million new homes are being built, fueling a 2.25 - 2.5 per cent growth in demand for construction-grade lumber. Our province has outperformed the national average fairly consistently, and he believes that over the next year BC will outperform Central Canada and the Maritimes and see employment growth. Strong economic fundamentals for BCīC is doing well on the job front, says Jestin. For instance, the average March price for a detached house in Greater Vancouver was $1,155,521, while the benchmark price was $1,056,400 - almost a full $100,000 apart.) The other market segment - let's call it The Rest of Us - will buy homes when there's optimism about job security and continued income. (The new MLS® Home Price Index and benchmark prices give a truer picture of typical home prices and trends for each market area, as they're less affected by a few ultra-high-end sales. Those extremes put upward pressure on average prices by skewing the whole regional price picture, as we saw last year. ![]() As Cameron Muir points out, luxury home sales appreciate much faster during good times. The high end, driven by wealthy families, produces eye-popping numbers like the benchmark price of $2,250,100 for single detached houses in Vancouver West. When it comes to demand, Warren Jestin says there are two distinct market segments. With unit sales below the 10-year average across the region, expect "moderate-average typical demand scenario." Demand - distinct market segments In real estate that's sales-to-listings, and he says that ratio is currently in balanced territory: in between 15 and 20 per cent. Muir describes the real estate market as "a constellation of factors that interplay with one another," but he says the age-old demand and supply ratio is the most telling. Warren Jestin (right) is Chief Economist at Scotiabank, where he studies Canadian and global economic issues. Cameron Muir (left) is the Chief Economist of the BC Real Estate Association, and the familiar face delivering BCREA's video outlook every month. Two top economists told REW.ca the same thing about where the Lower Mainland and Vancouver real estate market is going, and neither of them foresees the kind of sudden, extreme correction many people are worried about (or hoping for). Vancouver real estate bubble fears are overblown, and the numbers don't bear them out. Two top economists, Cameron Muir of BCREA and Warren Jestin of Scotiabank, look at the Vancouver real estate market and fears of a real estate bubble. ![]()
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