The overall value for homes in the Canadian city of Vancouver increased 20 percent in 2015. If that number isn’t eye opening enough, here is another; prices for luxury properties in Vancouver skyrocketed by 25 percent, according to CNN Money. That was the highest number for any city in the world.
To put that into perspective, Sydney saw luxury home values increase by 15 percent, Amsterdam’s rose 10 percent, New York’s rose by 2.4 percent, and London rose by 1 percent. In addition, home sales in Vancouver reached record numbers in 2015, increasing by 28 percent compared to 2014.
There are 25,300 millionaires, 720 multi-millionaires, and 262 individuals with a net worth over $30 million that call Vancouver home. As such, the average price for a single detached home in the city was $900,000 ($1.2 million CDN) in 2015, which means many local residents are being squeezed out of the city.
All of this points toward the increasing possibility that Vancouver’s housing market is dangerously close to overheating. A major issue is a lack of new developments, leading to a huge demand for homes while seller supply as low as it has been in years.