News
Donovan C. S. Collins
BA, RIBC, AACI, P.App
Do you remember Expo ‘86?
February 1, 2010
Greetings,
Do you remember Expo ‘86? I do. I also remember the great wave of development post-Expo, and the tremendous growth of Metro Vancouver over the next twenty plus years. Average market values increased by 10 percent, then 20 percent, and then 30 percent from 1986 through to 1989 and sales volumes increased approximately 50 percent annually through the same period. On the other hand, interest rates hovered between 11 and 12 percent in the late 1980s.
In less than one month, the 2010 Olympic & Paralympic Games arrive to Metro Vancouver and the region will again be on display to the entire world; what could be the impact of such an event on the real estate market this time around? In my opinion, with interest rates and inflation remaining relatively low, more funds available for credit, and the Asian markets poised for growth, we may be on the verge of a similar increase in price and sales volume as the post Expo ’86 era.
Just over one year ago in December 2008, the average sales price for detached dwellings on the Greater Vancouver MLS had dropped to $829,000. One year later, the current value of the same house would be 15 per cent greater, with an average sales price of $953,000. Sales volume totals for 2009 were also up 40 per cent from 2008, nearing the 2007 volumes (a very strong year for residential market). For more detailed quantitative data illustrating the market conditions, two charts are linked here and here.
February 1, 2010
Greetings,
Do you remember Expo ‘86? I do. I also remember the great wave of development post-Expo, and the tremendous growth of Metro Vancouver over the next twenty plus years. Average market values increased by 10 percent, then 20 percent, and then 30 percent from 1986 through to 1989 and sales volumes increased approximately 50 percent annually through the same period. On the other hand, interest rates hovered between 11 and 12 percent in the late 1980s.
In less than one month, the 2010 Olympic & Paralympic Games arrive to Metro Vancouver and the region will again be on display to the entire world; what could be the impact of such an event on the real estate market this time around? In my opinion, with interest rates and inflation remaining relatively low, more funds available for credit, and the Asian markets poised for growth, we may be on the verge of a similar increase in price and sales volume as the post Expo ’86 era.
Just over one year ago in December 2008, the average sales price for detached dwellings on the Greater Vancouver MLS had dropped to $829,000. One year later, the current value of the same house would be 15 per cent greater, with an average sales price of $953,000. Sales volume totals for 2009 were also up 40 per cent from 2008, nearing the 2007 volumes (a very strong year for residential market). For more detailed quantitative data illustrating the market conditions, two charts are linked here and here.
As region evolves and advances, so too does Donovan Collins Appraisals & Consulting. I broadened my knowledge through the completion of professional development studies in sustainable or “green” building evaluation. I also became involved with the Lighthouse Sustainable Building Centre in Vancouver and I am now listed as a Residential Service Provider. The online presence of Donovan Collins Appraisals & Consulting also increased over the past six months, with a Facebook page, Google listing and a fledgling Twitter page. Finally, I improved product development and delivery through the use of more comprehensive databases and fully digitalized reports.
Whether it be the changing winds of the market, or perhaps personal matters that prompt a requirement for the services of Donovan Collins Appraisal and Consulting, we greatly appreciate your past patronage and look forward to providing future assistance.
Sincerely,
Donovan Collins
BA, RIBC, AACI
Real Estate Appraiser and Consultant
t. 604.805.4791
doncollins@shaw.ca
EOE
