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“…many houses valued in the $3 million-to-$5 million range on Vancouver’s west side, and in West Vancouver, are selling for less than they did more than 10 years ago.” – excerpt from the article by Vaughn Palmer
Examples from the article:
A mansion in the 2500-block of West 36th Avenue in Vancouver sold for $4.4 million in 2013. This year, it sold for less [than] $4.3 million.
An older dwelling on a large lot in the 2200-block of West 44th Avenue in Vancouver sold for $4.5 million in 2016. It sold for significantly less last month, at $3.1 million.
A view house in the 2100-block of Westhill Place in West Vancouver was bought for $2.8 million in 2015. It just sold for $2.5 million.
Keep in mind that, over those same 10 years, compound inflation has increased prices of consumer goods in Canada by about 28-30% (and inversely weakened our dollar buying power). Thus to break even in real terms that $4.5 million 2016 purchase on West 44th Ave should have sold for $5.8 million in 2026. Instead, it sold for $3.1 million. Thus in real terms, the 2016 buyer has lost 47% of their ‘investment’. And that does not include transfer and any mortgage carrying costs. The reconciliation with fundamentals is going to be brutal, in all segments of the market. – vreaa
