The study of Vancouver house price showed overvalued by 11 per cent on a particular measure. Prices are falling at a rate of 10 per cent or more this year.
Metro Vancouver's average house price, $754,500, was overvalued 11-percent higher than the balance point. Besides, the housing affordability was considered as a serious problem in some Canadian cities, because of the ability of markets.
Prices of The Vancouver's houses can be stagnated over a period of time, like it had happened through the middle 1990s until 2001. Many houses have been built in Vancouver, at a much higher rate than household formation in the city during the up-cycle.
It is supposed that the little evidence of 'calamity' in the market was caused because of affordability. Many first-time buyers were squeezed out of the market for prices to rise higher.
It is believed that in 2009, the real estate market will find a new balance.
Newspaper: The Vancouver Sun (Business BC), Section D, Tuesday, September 9, 2008. By Derrick Penner.