Over the last 10 years, Vancouver Real Estate has proven to be a solid investment for investors. This past year proved that market gains were a better option over gold and silver. Even with the turbulence in the market, the impressive figures obtained have not been published, but it is speculated that there are big smiles on the faces of investors. An average home in Metro Vancouver has earned at least a 7.5% return over the past ten years. The median home price was just $250,000, but last year the price was around $660,000 according to the ReMax Housing Report.

This performance in the Vancouver real estate market outperformed most commodities and gold in the latter part of 2010. Real estate is a sound investment, but only for the long term. High home prices in Canada are taking their toll on investment longevity prospects. The next few years will be a bit difficult for investors to recover their initial investments. Investors will have to be a bit patient, even if their initial investments take more than five years to pay off. Elsewhere in Canada, the compound annual rate was as high as 8% on returns.

High prices in Vancouver and Metro Vancouver have affected sales and scared some investors away from buying properties and raising capital on them. This did not stop major players from driving Vancouver past the national market average of 6.6%. The housing market tends to darken disposable income growth, but the rate was beyond normal. Revenue growth in Canada has been about a quarter of the national compound performance. The future of Metro Vancouver real estate is uncertain with offshore investment coming in from China and other parts of Asia. Cash flow is definitely a nice short-term advantage, but buying from a foreign investor is a bit more difficult than getting a loan from a loan shark.

Even with the temporary label of “unaffordable,” most investments in the next few years will be hard to swallow, unless there is a sudden turnaround in the economy or other factors that favor zone real estate. This does not mean that other places in Canada are not attractive or that returns will not be there. It will take a bit of time for things to settle down, but local investors are weary of the long journey ahead. The choice that residents make is limited by the current conditions offered by the Canadian real estate market.