Tuesday, June 09, 2015

Housing Market - Healthy or Toxic??

This Huff Post article reports the sale of a Vancouver home for $1.1 million over the asking price within hours of the home being listed. It was sold to an offshore buyer who owns one other property in Vancouver.

Is this kind of real estate market healthy or toxic is becoming a question that may require some focus. On one end of the scale the sky is the limit while on the other end there seems an ever growing demand for 'tiny or micro housing' as it becomes more and more difficult for young people to get into the housing market.

Do these kind of market pressures produce a distorted housing price that may be great for the flippers and the speculators but likely could play havoc with people who just want a house to be their home. These kind of sale prices can put serious upward pressure on the assessed value of housing, which naturally puts upward pressure on the tax bill.

This Financial Post article examines the impact Canada's hot home market is having on people trying to buy their first home.

While Nanaimo still has an inventory of 'affordable' housing the 'average' Nanaimo home is well beyond the reach of the average first time home buyer.


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