2006 to date has been more of the same as per the last 5 years: limited inventory, multiple offers and escalating prices. Despite concerns over the US housing market, we have yet to feel the effects in Vancouver.
The three biggest reasons for this are:
However the idea of investors (who play a huge role in the Downtown market especially) leaving the market en mass just 18 months prior to the Olympics, seems unlikely. Their curiosity if nothing else should keep them in the game until at least 2011.
In the meantime, in order to prevent a major slowdown, it would also be nice to see slower periods of activity each year to counter balance the crazy spring markets and keep the prices in check. If we see a calmer last quarter to 2006 I would not be at all surprised or unhappy. In the long term this could be good for both buyers and sellers.