If you are looking to buy a new home in Greater Vancouver, once again you’re going to have to pay more.
The Royal LePage House Price Survey released today shows significant price appreciation in the year-over-year price of homes in the region.
For bungalows and two-storey homes, the median price saw double-digit increases year-over-year, jumping 19.4 per cent to $1,022,688 and 13.2 per cent to $1,224,805, respectively. Condo prices in the same time period rose four per cent year-over-year to $462,719.
Homes in Richmond and Burnaby saw the biggest increase across housing types. Prices rose 20.2 per cent to $868,105 in Richmond and 18.4 per cent to $832,411 in Burnaby.
“Strong home price increases in Greater Vancouver are playing a significant role in the increases we are seeing at the national level,” said Alan Stewart, regional manager, Royal LePage Sussex, in a release. “The strength of the British Columbia economy combined with newcomers moving to the province continues to drive the local housing market. Although Vancouver job growth is currently lagging behind the national average, dramatic appreciation in the housing market can be partly attributed to an inflow of retirees and international buyers.”
In central Vancouver, the aggregate home price in the third quarter of 2015 increased 15.6 per cent year-over-year to $1,097,726. Due to the rarity of detached homes in the area, Royal LePage says the two-storey and bungalow segment is very competitive with prices increasing to $1.9 million and $1.2 million respectively.
In North Vancouver, the average home price grew 8.7 per cent to $1,024,884, also due to the limited supply of available listings. The average age of a homeowner in North Vancouver is increasing and there are fewer first-time buyers entering the market.
West Vancouver is becoming a buyer’s market as inventory levels increase and the price appreciated 3.2 per cent to $2,391,407.
A significant amount of housing demand in Surrey is being driven by homebuyers coming from China, according to Royal LePage real estate experts. However, inventory has not kept up and there are a shortage of homes to buy. Condo listings are down five per cent and bungalow listings are down 30 per cent. As a result, the aggregate home price in Surrey has seen a strong increase of eight per cent year-over-year to $619,554.
Langley remains relatively affordable, even though the aggregate home price has increased by 8.1 per cent year-over-year to $608,818.
Inventory remains low in Coquitlam, putting continued upward pressure on prices. In the third quarter, the aggregate price of a home in the region increased 8.2 per cent year-over-year to $750,319.
“Economic slowdowns in energy-dependent markets, most notably in western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Phil Soper, chief executive officer, Royal LePage. “In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families.”
“Home ownership remains a bright light amid unsettled investment and savings options in volatile global capital markets. As we lead up to election day, it’s not surprising that all of the major political parties are acknowledging the housing sector’s prominence as the foundation on which the economy has been built for years, and a critical foundation upon which Canadians can build their savings.”
Comments