Vancouver's white-hot housing market

CNC
Added On May 7, 2016

Turning to Canada, let's take a look at the white-hot housing market in Vancouver.
 
This house locates in a quiet residential neighborhood in the suburbs of Vancouver.
 
The seller listed the house on the market last Tuesday for 1.5 million Canadian dollars or about 1.16 million U.S. dollars. 
 
It ended up selling for just under 1.32 million dollars, nearly 200,000 dollars above the listing price.
 
Real estate agents say sales fetching higher-than-asking prices have become increasingly common in Vancouver.
 
SOUNDBITE (ENGLISH): ADIL DINANI, Royal Lepage Real Estate
"There's a bit of fear coming into the market. You know, Fomo, we call it. Fear of missing out. So the local buyers that are realizing that they're initially on the sidelines, they're feeling that if they don't get into the market now, they might not have an opportunity to buy a home in the next two to three years."
 
A report by the Real Estate Board of Greater Vancouver shows that the benchmark price for a single family home in Metro Vancouver climbed by more than 30 percent to 1.08 million dollars over the past year.
 
The benchmark price is a measure used by the board to describe a typical property in the region. 
 
It takes into account the lot size and number of rooms, but does not represent the average price of homes in the region.  
 
STANDUP: EVAN DUGGAN, CNC Correspondent: 
"Many experts are saying that the dramatic increase in housing prices is far outpacing other economic fundamentals in the region. For instance, the average family household income in Metro Vancouver is just under 74,000 dollars, which is actually less than the Canadian average."
 
SOUNDBITE (ENGLISH): ADIL DINANI, Royal Lepage Real Estate
"There's nothing typical about Vancouver's housing market. So when a lot experts try to establish economic norms or median incomes to house prices, there isn't really a correlation. I think we have a lot of external influences on our market, which is pushing the market up."
 
As for the rest of the market, Dinani says low lending rates, a strong local economy, a surge in foreign buyers and the ongoing transfer of wealth from parents to their kids would likely continue to stoke the region's white-hot housing market. 
 
SOUNDBITE (ENGLISH): ADIL DINANI, Royal Lepage Real Estate
"I think all of those factors lend themselves to a really strong housing equation."
 
The report also suggests that prices are increasing the most rapidly now outside of Vancouver, with massive price jumps in the suburbs.