Metro Vancouver housing prices continue uptrend in second quarter
The reported 24.6 per cent increase far outpaces national trend
Housing prices in Metro Vancouver increased 24.6 per cent in the second quarter compared to the same time year previous, according to data from a Royal LePage national house price survey.
Metro Vancouver's price spike is more than twice the pace of the national average, which saw housing prices increase 9.2 per cent. According to the survey, the median price of a house in Metro Vancouver reached C$1,098,599 (US$848,288), compared to the national average of C$520,223 (US$401,692).
“The quest for affordability in Vancouver seems to be influencing consumer housing type choices,” said Phil Soper, president and CEO of Royal LePage. “This may indicate that families being priced out of the single-family detached home market in Vancouver are looking upwards to condominiums.”
Metro Vancouver condominiums increased 11.5 per cent to just over C$500,000 (US$386,074).
The survey says the city of Vancouver posted a year-over-year gain of 27.5 per cent to C$1,330,531 (US$1,027,366). The majority of the city’s price gains came from increases of 28.5 per cent and 26.5 per cent for bungalows and two-storey houses, respectively.
West Vancouver and Richmond also posted higher then average gains of 29.7 per cent and 28.3 per cent, respectively. Houses in West Vancouver increased by almost a third, increasing over C$700,000 (US$540,495) to C$3,093,776 (US$2,388,817).
According to the survey, 74 per cent of Vancouver real estate advisors said that home purchases from international buyers increased. However, 37 per cent believe foreign home ownership accounts for less the 10 per cent of the market.
Low interest rates were attributed to Canada’s real estate market growth. The survey says continued economic uncertainty, particularly from the Brexit vote, is fuelling the nation’s low interest rates.