Positive market influences remain in BC despite slowdown

Real estate markets are local by nature and when there is an overall downtown some areas will fare better than others.  "To some extent, we are in the best possible location in North America for real estate to hold prices and continue upwards" says Grant Murray, vice president of Concord Pacific Group of companies in a recent interview by Westcoast Homes and Design.

As we continue to see conditions supporting a Buyer's market there remain some positive influences that will ensure Lower Mainland real estate values will stay strong now and in the future. “More people are moving to BC than leaving and this will continue to put pressure on prices," says Murray " We have the support of many infrastructure projects  as a lead up to the 2010 Winter Olympics, as well as major projects slated to start after the games. And we have strong immigration and a limited amount of developable land." 

The biggest hurdle right now is a lack of consumer confidence, mainly due to events happening south of the border. The US is Canada's largest trading partner, and the effects of what is happening with their housing and financial markets cannot be avoided. Murray correctly states "As we watch daily newscasts on the US and Canadian networks about their sub-prime meltdown, it affects us emotionally."

Murray does caution about drawing to many similarities between the local market and the US situation and goes on to explain how the US problem was brought on by a completely inadequate mortgage system that allowed buyers and investors to go well beyond their means. "It is important to remember that the foreclosure and mortgage problems in the US are not factors here in Canada, as we have infinitely better regulated set of checks and balances within our banking and mortgage broker community."

Murray, like other developers, believes in densification as the answer to what many see as Vancouver's biggest problem, affordability. He argues that local governments should allow greater densities as it would allow developers to reduce costs, savings which ultimately would be passed on to homeowners. He goes on to say that the provincial government should also being doing its part by reducing the property purchase tax. "Lowering this tax would be a great start and eliminating the threshold above $450,000 for all first time homebuyer's would re-stimulate the first time home buyers into the market place since a large majority of homes, townhomes and condominiums are above this rule" 

Though he admits a bias towards downtown Vancouver development he see lots of opportunities for buyers and encourages them to take advantage of the current market slowdown to find the right place in the right location.  

Concord is currently developing its final site around BC place, and has 60 percent of the remaining land to develop in Vancouver's downtown core.

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