Vancouver’s Builders Facing Continued Cost Hikes

September 1st, 2008 Categories: Real Estate News, Vancouver Real Estate

So says the President of the Vancouver Regional Construction Association. Developers expect higher costs for concrete, steel and all petroleum based products for the foreseeable future.

Keith Sashaw says projected annual increases of 8% to 10%pr year in the cost of construction for the coming years. Perhaps this is part of the reason some of Vancouver’s developers revert to the buyers, asking for more money in order to finish the project, after it has pre-sold.

Based on this information, expect construction costs to keep new home prices higher every year.

In addition, new “green” requirements will also add to the cost of construction. As new home prices rise, this increase will be reflected in prices for Vancouver’s resale properties.

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This is one of many reasons why I think Vancouver real estate prices will continue to rise and that we are experiencing a short window of opportunity for a price pullback. Do you agree? Leave a comment.

Happy Labour Day weekend.

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