Vancouver BC Real Estate Market Roller Coaster

Last year, I ‘ve posted a clip depicting the US Home prices plotted on a roller coaster. The inflation-adjusted prices (1890-2007) accounted for a bumpy ride. In case you missed it, check it out here, it is worth the ride…

Now, I came across another bumpy ride in real estate. This time, it’s the Vancouver  roller coaster, taking you on a ride through the last 35 years of inflation-adjusted house prices in Vancouver, Canada. Pay attention to the comments alongside: ‘keep arms and assets inside ride at all times’, ‘different this time’, ‘prices only go up’, ‘Buy Now, or be priced out forever’ (at the 1981 peak). It is in many ways a typical real estate ride. Enjoy!

Recent talk of a Canadian housing bubble calls for a look at the history of our bubbliest city: Vancouver BC. When the housing bubble of the early eighties popped in this city some house prices dropped by 50% over the next couple of years and didn’t reach their inflation adjusted real price again for 25 years. What would a real estate market bust look like these days?

You can find the actual graph on which this roller coaster ride has been based here.

This is a roller coaster simulation of the last 35 years of the Vancouver Real Estate market. The actual graph you’re riding is the inflation adjusted value of a house in Vancouver BC based on data collected by Royal LePage and calculated by the UBC Centre for Urban Economics and Real Estate. Some of the peaks and troughs have been rounded to keep the train from flying off the tracks, but other than that slight modification it is a precise scale model of the red line on the graph.