The latest numbers from Royal LePage suggest that Vancouver remains Canada’s hottest real estate market, strongly outpacing the rest of the country during the second quarter of 2016.
According to the Royal LePage House Price Survey released Wednesday, the aggregate price of a home in Greater Vancouver rose 24.6 per cent year-over-year to nearly $1.1 million.
The median price of a Vancouver bungalow rose 28.5 per cent year-over-year to $1.2 million, while the median price of a two-storey home in Greater Vancouver increased 26.5 per cent to more than $1.4 million. The price of condominiums climbed 11.5 per cent.
“Pronounced home price increases continue in Greater Vancouver driven by low inventory and tremendous demand,” Alan Stewart, regional manager, Royal LePage Sussex, said in the report.
“Many homeowners within the region who may have considered selling their properties are holding onto their homes, as they are wary of being priced out of the market when they buy. This situation is placing added strain on inventory levels and causing prices to skyrocket further. On the flip side, properties listed for sale are being snapped up as soon as they hit the market.”
Substantial year-over-year increases were seen across several Metro Vancouver regions. In West Vancouver, the aggregate price of a home rose 29.7 per cent to more than $3 million. Richmond, Burnaby and Coquitlam also saw increases of greater than 20 per cent.
Surrey and Langley both saw increases of 17.3 per cent.
The national average price of a home was up 9.2 per cent from last year at $520,223.
Some recent numbers have indicated that Vancouver’s real estate market may be slowing down. One former Wall Street short seller has said Vancouver’s real estate bubble is set to burst.
But Royal LePage forecasters see higher prices on the horizon thanks to continued low interest rates.
“We don’t see even a mild correction for either the Toronto or pistol-hot Vancouver markets in 2016,” Phil Soper, Royal LePage president and CEO, said.
– With files from The Canadian Press