Vancouverites will tell you Vancouver is one of the best places in the world to live, and for years now quality of life surveys have been backing up this claim. With that quality of life, however, comes an expensive real estate market – the sixth highest in the world, the second in North America, and the most expensive in the country.  2010 has been a landmark year for Vancouver, but what has that meant for the Vancouver real estate market?  And where does that leave us going into 2011?

2010 Winter Olympics and the Vancouver Real Estate Market

2010 began with a steady climb in real estate prices and sales, as the Vancouver real estate market continued the trend established in 2009, when a recovery from the recession first became evident.  As the 2010 Olympic Games drew closer, however, the real estate market moved beyond recovery and into growth.  In April 2010 Vancouver residential property sales peaked at 3,512, and benchmark prices of residential properties reached all time highs.

Real Estate Market Levels Off

After the spike in activity surrounding the 2010 Olympics died down, the Vancouver real estate market leveled off, and has remained relatively stable for the rest of the year.  While housing sales after April initially dropped and prices increased at a much slower rate, the last couple of months show relatively little change from the summer; home sales have improved and the downward pressure on prices has eased, indicating a balanced market appealing to buyers and sellers alike.

Property Taxes to Rise in 2011

So what is the outlook for 2011?  The Vancouver real estate market appears to have found some stability that will last at least into the first part of the New Year.  One thing buyers should keep in mind, however, is the recently announced hike in property taxes.  Although last week council voted to increase Vancouver property taxes by an average of 2.2% (up from the projected 2% increase) in 2011, residential property owners will take the hardest hit.  Property taxes for home owners will rise by 4.2%, while those for businesses will only increase by only 0.2%, reports the Vancouver Sun.  The extra funds flowing into the city are intended to be used for homeless and anti-gang programs, libraries, parks boards and other public programs, so here’s hoping the tax hike will help  us maintain that quality of life for which Vancouver is renowned.