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‘Irrational’ 10-year home price spike transforms Vancouver

The proportion of million-dollar detached homes in Vancouver jumped from just 11 per cent a decade ago to more than 90 per cent last year – a dramatic increase that experts warn is “irrational” and could soon come to an end. The decade-long price surge has transformed the city from one in which a house worth more than $1-million was once a rare luxury to a place where that million-dollar threshold – a psychological barrier that was once meticulously tracked – is now considered at the low end of the market. And it’s a reality that financial experts and even the Bank of Canada have said is unsustainable. Phil Soper, chief executive officer of real estate firm Royal LePage, also  said the incredible price surges in Vancouver are unsustainable. “You have severe affordability issues in Vancouver. It has become a serious public-policy issue, so it’s not healthy,” he said in an interview. “We’ve got a market in Vancouver that is appreciating too quickly. Prices are moving upward at an irrational rate.”

 

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