Condos perform well, while diminishing supply and offshore buyers keep
single family homes in high demand
VANCOUVER, Jan. 6 /CNW/ - Year-over-year, fourth-quarter 2010 house
prices in Vancouver were up across the board according to the Royal
LePage House Price Survey and Market Survey Forecast released today.
The biggest gain came from single family homes on Vancouver's West
Standard two-storey homes led the way, with average price gains across
all neighbourhoods of 9.8 per cent over the same period last year,
selling for a fourth quarter average of $1,007,500. Detached bungalows
followed with year-over-year gains of 7.6 per cent, selling for a
fourth quarter average of $891,500. Standard condominiums were close
behind, selling for an average price of $484,500, a gain of 7 per cent.
While single family homes continued to dominate the market in terms of
price gains, condos performed well across Metro Vancouver, particularly
on the East Side.
"Condos are a big part of the Vancouver market because of the price
point," said Bill Binnie, broker and owner of Royal LePage North Shore.
"Condos are an investment vehicle, and many people downsize from single
family homes to change their lifestyle. Plus, many new condos offer a
'bling' factor , such as granite counter tops, which is attractive to
buyers." Eighty per cent of downtown properties sold in the fourth
quarter were condos.
Vancouver buyers are being brought to the market by continued
historically low interest rates and softening prices from the third
quarter of 2010. Tight inventory and high prices in Vancouver's West
Side are pushing up prices in the East Side, particularly for single
"West Side and West Vancouver homes are unaffordable for many people,"
said Chris Simmons, broker and owner of Royal LePage Westside & City
Centre. "Buyers started looking to the East Side or Richmond."
Vancouver house prices are forecast to increase 3.7 per cent in 2011,
while inventory is expected to grow 8 per cent. Interest rates will
continue to be the most important factor, followed by employment
Simmons added that one of the best times to buy is January, before
competition picks up in spring.
Nationally, the average price of a home increased between 3.9 and 4.6
per cent in the fourth quarter of 2010, compared to the previous year,
as markets shrugged off a lackluster third quarter and returned to a
post-recession growth profile. Home values are forecast to continue a
moderate and steady climb in many of the country's key housing markets
through 2011 with sales activity skewed to the first half of the year.
"Trends in the housing market continue to be driven by the lingering
after-effects of the recession," said Phil Soper, president and chief
executive of Royal LePage Real Estate Services. "Canadians realize that
interest rates are unsustainably low and that homes will become
effectively more expensive when mortgage rates return to normal levels.
We will likely see more price appreciation early in 2011 as some buyers
complete transactions in advance of anticipated higher borrowing
Across Canada, the average price of a home is forecast to rise 3 per
cent over the coming year to $348,600 while the number of transactions
is expected to drop 2 per cent.
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 80
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 fourth quarter 2010. A printable version of the fourth
quarter 2010 survey will be available online on February 4th, 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
experts. Historical data is available for some areas back to the early
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.
SOURCE Royal LePage Real Estate Services
For further information:
Director, Public Relations and National Communications
Royal LePage Real Estate Services