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The definition of the term "Housing Bubble" in regards to Vancouver Condos


Blog by Ian Watt | April 5th, 2017


If you Google the the definition of Housing Bubble this is what you will find.

A housing bubble is a run-up in housing prices fueled by demand, speculation and exuberance. ... Speculators enter the market, further driving demand. At some point, demand decreases or stagnates at the same time supply increases, resulting in a sharp drop in prices — and the bubble bursts.

In the case of Vancouver condos with its 40% increase in the average price of sale price of Downtown Vancouver condo (from $502,000 in March 2015 to $720,000 in March 2017) what we can apply from the Bubble definition is this; We have had a run up in housing prices fueled by demand, speculation and exuberence... And Speculators have enetered the market, which has further drivien up demand.

What happens next? Stay tuned.