Low interest rates and demand from overseas buyers continue to put
pressure on limited housing supply
VANCOUVER, April 12 /CNW/ - According to the Royal LePage House Price
Survey released today, standard two-storey homes and detached bungalows
in Vancouver sold for nearly three times the average national price in
the first quarter of 2011. A limited supply of homes for sale, low
interest rates and ongoing demand from overseas buyers continued to
drive up prices.
Standard two-storey houses posted the largest increases rising 9.7 per
cent year-over-year to $1,083,750 in the first quarter. Detached
bungalows followed with an 8.2 per cent increase, selling for an
average of $980,000. Even standard condominiums, which are in better
supply, increased 7.8 per cent - selling for an average price of
$507,250. For the purpose of calculating city-wide Vancouver averages,
the Royal LePage House Price Survey incorporates Vancouver West Side,
Vancouver East Side, North Vancouver and West Vancouver.
"Continued low interest rates remain the most influential factor," said
Bill Binnie, broker and owner of Royal LePage North Shore. "However,
demand from mainland Chinese buyers continues to be strong and impact
Although new listings are down slightly compared to last year, inventory
is keeping up with the pace of spring sales. Well-priced homes are
attracting multiple offers.
On Vancouver's West Side and East Side, where rezoning for higher
density is further eroding single family home listings - a standard
two-storey home sold for an average price of $1.5 million and $765,000
"Vancouver West Side price increases have been the most significant,"
said Chris Simmons, broker and owner of Royal LePage Westside & City
Centre. "Again, the reason is mainland Chinese buyers looking for
detached, single-family homes."
Simmons also points out that, if Vancouver West Side and West Vancouver
sales prices were omitted from the overall calculation, the average
house price in Greater Vancouver would be significantly lower.
Nationally, low interest rates and a recovering economy continued to
fuel activity in Canada's housing markets over the past year, which has
led to country-wide increases in average home prices. In the first
quarter of 2011, the national average price of a detached bungalow rose
4.3 per cent year-over-year to $341,355, while standard two-storey
homes rose 3.5 per cent to $379,388 and standard condominiums rose 4
per cent to $237,919.
"The rate at which Canadian homes are appreciating may well have peaked
for the next year or so," said Phil Soper, president and chief
executive of Royal LePage Real Estate Services. "We expect house prices
will continue to creep up, but most of the excess demand created by the
initial drop in interest rates has been satisfied, and affordability
continues to erode slowly, allowing the listings supply to catch up.
In most markets, lower single digit percentage increases are more
likely for the balance of the year."
"Canada's real estate market has maintained momentum coming out of 2010,
indicating that the post-recession recovery is continuing," Soper
added. "While low interest rates continue to drive demand, the tepid
pace at which employment levels are improving is tempering the rate of
home price appreciation in many Canadian cities."
About the Royal LePage House Price Survey
The Royal LePage House Price Survey is the largest, most comprehensive
study of its kind in Canada, with information on seven types of housing
in over 250 neighbourhoods from coast to coast. This release
references an abbreviated version of the survey which highlights house
price trends for the three most common types of housing in Canada in 90
communities across the country. A complete database of past and
present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of
the data for the first quarter 2011. A printable version of the first
quarter 2011 survey will be available online on May 6th, 2011.
Housing values in the Royal LePage House Price Survey are Royal LePage
opinions of fair market value in each location, based on local data and
market knowledge provided by Royal LePage residential real estate
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading
provider of services to real estate brokerages, with a network of
14,000 real estate professionals in over 600 locations nationwide.
Royal LePage is the only Canadian real estate company to have its own
charitable foundation, the Royal LePage Shelter Foundation, dedicated
to supporting women's & children's shelters and educational programs
aimed at ending domestic violence. Royal LePage is a Brookfield Real
Estate Services Inc. company, a TSX-listed corporation trading under
the symbol TSX:BRE.
For more information visit www.royallepage.ca or www.brookfieldresinc.com.
SOURCE Royal LePage Real Estate Services
For further information:
Director, Global Communications & Public Relations
Royal LePage Real Estate Services