Royal LePage: Vancouver housing prices continue to soar
July 13, 2016
On July 13, data was released from the Royal LePage House Price Survey, which gathers information on two-storey homes, bungalows and condos in 53 real estate markets across Canada.
The brokerage anticipates the average price of a home in Canada will be 12.4 per cent higher than average prices at the end of 2015.
“Our forecasting models, which pointed to a slowing housing market as the year progressed, included a modest increase in the cost of borrowing,” said Phil Soper, president and chief executive officer of Royal LePage.
Economic and social “disruptions” have introduced new risks, causing the Bank of Canada to leave interest rates as is for now, Soper said in a press release on July 13.
Canada’s real estate market showed high appreciation in the second quarter of 2016, with the highest year-over-year increase in the last five years.
The average price of a home in Canada increased by 9.2 per cent year-over-year to $520, 223 by the second quarter of 2016.
So what does that mean for Vancouver's housing market?
The average aggregate price of a home in Vancouver continues to rise. This quarter it reached $1,098,599 with a significant increase of 24.6 per cent year-over-year.
Home appreciation in the region continues to soar at a fast rate, due to low inventory levels and a large demand, according to a press release published by Royal LePage on July 13.
The median price of a bungalow in Vancouver rose by 28.5 per cent year-over year to $1,179,130. Two-storey homes’ average price increased by 26.5 per cent to $1,446,700. The median price of a condo reached more than half a million dollars, showing an increase of 11.5 per cent.
Homeowners who considered selling are now holding on to their properties, out of fear of being priced out of the market when they buy, said Alan Stewart, realtor at Royal LePage Sussex.
Royal LePage forecasts the Vancouver market to continue to increase in price, possibly by 27 per cent by the end of 2016.
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About Olivia Bowden
Olivia Bowden is a freelance writer and is currently an Editorial Intern at YP Next Home. She attends Carleton University and is completing a Master of Journalism degree. Olivia enjoys learning and writing about the Canadian real estate market.