With its glorious mountains, beautiful beaches, and ancient rainforests, it's no wonder that the City of Vancouver and its surrounding suburbs consistently rank well on worldwide quality-of-live surveys. Residents of Vancouver enjoy all the benefits of city living- culture, industry, shopping, arts and entertainment – while still being close to a stunning, natural setting. Add to that Vancouver's proximity to the US Border, and the business advantages of it large port, and you have a city that more people flock to every year, eager to get a taste of life on the West Coast.

This dolce vita on the Pacific doesn't come cheap however – Vancouver has the second highest cost of living in Canada (next only to Toronto) and housing prices have been soaring in recent years.

Some realtors seem to feel that housing prices, particularly condo prices (as opposed to detached homes) will fall, or at least stop escalating, in the near future. Other don't see things getting any cheaper, especially with the 2010 Olympics on their way.

The highly speculative nature of the Vancouver real estate market means that talking about property values has become something of a city pastime. Numerous blogs have sprung up in which homeowners argue and trade theories on what the market might do next, the most notable being the now-defunct Vancouver Housing Market Blog, which at its peak drew 10,000 uniques per day.

Some of the more contentious issues surrounding Vancouver's housing markets are:

1. The condo boom. Condo construction has been going on at an unprecedented rate in the city, with residential towers now competeing with commercial construction for space in the Downtown core. Presales have become a very popular for such developments, with condos selling out even before foundations have been laid down.
2. With Vancouver being such a hot market, condo presales are often snapped up by investors from the other side of the Pacific. Often, condos will sit empty for years while overseas owners wait for their value to inflate.
3. Detached homes in Vancouver proper have become so expensive that they are virtually out of reach for first time buyers. Indeed, the average price for a detached home has more than doubled since 2003. Buyers wishing to own a detached home often resort to renting out secondary suites to help pay their mortgage.
4. All of this condo craziness, combined with preparations for the upcoming 2010 Olympic and Paralympic games, has driven the cost of construction in Vancouver through the roof- many developments are unable to complete by deadline, creating something of a panic for pre-sales purchases.

These aforementioned issues barely scratch the surface of explaining Vancouver's complicated housing market, - transitioning areas, the development of the derelict Downtown Eastside, and the improvement of mass transit all figure into the Vancouver real estate discussion too. Keep watching this space for stories and news on real estate. If you're a Realtor looking to offer your expertise or just an avid follower of the market, drop us a line at realestate@vancouver.com, or leave a comment in the comments section below.