Fancy investing in a condo where prices have gone up steeply in the last four years (a hefty 13% in 2007 alone)? Got the cool $1.1M price tag? Then Vancouver is the place for you. Such are some of the fascinating tidbits in the well-illustrated and well-packaged presentation Vancouver Condo Update given in mid April by CMHC analyst Robyn Adamache to the Mortgage Investment Association of BC.
Interestingly, Adamache forecasts a moderation of price increases to only 8% in 2008 and 5% in 2009 as speculative activity is decreasing and construction activity is at a very high level. No mention is made of the 2010 Olympics. That surely cannot dampen demand in the next few years but then what happens, especially as the stock increases with construction? Another boom to end and a flat or bust period to start again?