TIME MACHINE at vancouvercondo.info January 1st, 2011 at 11:09 pm writes – “Houses that sell for $800K today were in many cases much less than $300K [ten years ago]. Take a look at this link listing some 2001 Vancouver sales.
1105 W 32ND AV is interesting. In 2001 someone paid $585K for a 3000 sq ft house on a corner lot in Shaughnessy that is at least 50 feet wide. That house would be a minimum of $1.8m today.
What has changed since 2001, except interest rates and stupidity? In 2001, BC had a healthy forestry industry. What industry does it have now, other than real estate development??
I am at the top end of income earners in this city. I made about $185K/year in 2001. In 2010 I made about $215K. Ten years more experience accounts for some of that increase. How can prices of high-end houses have sustainably tripled!! when my high-end income hasn’t even gone up by 20%?
Please don’t mention rich Asians, etc. because they have been here for decades, and were certainly here long before 2001.”
Great comment, TIMEMACHINE; directly to the crux of the matter.
Growth in price of housing cannot sustainably depart from growth in incomes. See the illustrative chart below. And see this post for the source of the temporary divergence. -vreaa