Report by rennie & associates notes unsustainable rise in Vancouver home prices, and asks, “What else is new?”
Vancouver real-estate marketer rennie & associates realty ltd. has released the fall installment of its semi-annual publication.
The new edition of rennie landscape dealt with a wide range of subjects, from the economy to demographics and housing policy.
One section sought to put rising home prices “in perspective”.
“House prices have been rising unsustainably,” rennie landscape stated.
It noted that Metro Vancouver has been witnessing “out-sized growth in home values” for many years.
“Not to be flippant, but...what else is new?” the paper asked.
The document explained that the home price increases in Greater Vancouver as well as the Fraser Valley in the past year were “in line” with the five-year average annual increase of 10.2 percent.
For context, rennie landscape pointed that this was “much more modest” compared to the appreciation of other assets and commodities.
One example is the S&P 500, which is a stock market index, which rose 31.2 percent over the past year.
In addition, crude oil prices increased 72.2 percent; bonds, 112.2 percent; and Bitcoin, 342.1 percent.
“The bottom line is that loose monetary policy including ultra-low interest rates, combined with generous fiscal supports, have fuelled asset values,” rennie landscape stated.
A piece of advice for everyone: “Enjoy it, or loathe it, while it lasts, because these extraordinary conditions won’t be around forever.”
More details here.