High demand and surging market activity lead to strong price gains
VANCOUVER, July 14, 2015 /CNW/ - The Royal LePage House Price Survey and Market Survey Forecast released today showed sizeable year-over-year price increases across all housing types surveyed in Vancouver.
The average prices for standard two-storey homes and detached bungalows both saw double-digit increases rising 13.6 per cent year-over-year to $1,368,125 and 12.6 per cent to $1,247,125, respectively. Standard condominiums in the city also experienced a healthy increase, rising 6.0 per cent to an average price of $521,425.
"Average prices for homes in Vancouver continued their sharp ascent in the second quarter as a result of high demand and tight supply," said Bill Binnie, broker, Royal LePage Northshore. "Vancouver is a highly sought after destination for homebuyers with a very limited supply of properties, which puts the market firmly in the hands of the sellers."
One of the major stories that developed in the second quarter was the significant appreciation of detached homes. "There is a finite supply of detached homes and they continue to be one of the most desired property types by a wide range of buyers," said Chris Simmons, manager of Royal LePage Westside in Vancouver.
Looking ahead, Royal LePage forecasts that average prices for the full year will rise by 9.4 per cent in the Vancouver market, compared to 2014, with price increases predicted in all housing categories.
"The market is firing on all cylinders. The low interest rate environment is encouraging many buyers to make their purchase now while the rates remain attractive. There is little indication that demand will taper off in the short term," added Binnie.
According to Simmons, activity in the condominium market is picking up and is expected to persist throughout the year. "With a diminishing supply of detached homes, buyers are starting to gravitate towards condominiums. If there is an uptick in sales activity and decrease in inventory, it would not be surprising to see price appreciation quicken in this category."
Nationally, against the backdrop of mixed economic signals at home and abroad, Canada's real estate market remained healthy in the second quarter of 2015, with solid national average price appreciation across housing segments. Furthermore, the combination of high sales volumes and vigorous price appreciation in Canada's largest cities has put the national residential real estate market on track for a record year in terms of total sales. With most Canadian real estate markets across the country advancing modestly, and some rapidly, Royal LePage advises that a further interest rate cut by the Bank of Canada could over-stimulate markets such as greater Toronto and Vancouver.
During the second quarter, the average price of a home in Canada rose between 3.9 per cent and 7.5 per cent year-over-year in the second quarter. The detached bungalow segment had the highest national increase, rising 7.5 per cent year-over-year to $438,938, while standard two-storey homes appreciated 6.8 per cent to $471,002. During the same period, the average price of a condominium rose 3.9 per cent to $268,583. Looking ahead, Royal LePage forecasts that the average price of a home in Canada will increase 6.1 per cent for the full year when compared to 2014.
"The robust national average home price increases that we have seen in the second quarter are heavily influenced by activity levels in Toronto and Vancouver," said Phil Soper, president and chief executive officer, Royal LePage. "Looking to Canada as a whole, 2015 is shaping up to be a record year for housing, despite the cloud of economic uncertainty caused by low oil prices and twitchy global economies."
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 website at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the second quarter of 2015. A printable version of the second quarter 2015 survey will be available online on August 14, 2015. 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.
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 over 16,000 real estate professionals in more than 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 and 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 symbolTSX:BRE.
For more information visit: www.royallepage.ca.
SOURCE Royal LePage Real Estate Services
For further information: Eddie Tabakman, Kaiser Lachance Communications, 604-637-6664, [email protected]