The average price of Metro Vancouver homes has nearly recovered to 2008 highs, according to the Royal LePage house price survey released Thursday.
The average price of a detached bungalow was 1.8% below prices in the third quarter of last year to $802,500. The average price for a two-storey home remains 2.3% below third quarter 2008 prices at $904,750. Standard condominium prices have fallen only 0.7% to $445,500.
Average prices for homes in West Vancouver remain one of the most affected, down 5% from the same period last year.
Part of the rise in prices can be attributed to fewer homes being put on the market. Third quarter inventory was approximately two-thirds of 2008 levels, resulting in homes selling at or above the asking price. Single family homes are particularly scarce leading to multiple offers being made per sale.
August was a particularly active month with twice as many condominiums and three times as many single family homes selling in Metro Vancouver over the same period last year.
Despite the boost in sales and selling prices, the report warned that sales activity remains in correction mode.
Phil Soper, president and CEO of Royal Lepage said, "What we are experiencing is the end of a normal, short-term correction. Once housing supply returns to normal levels, we believe the economy will support modest pricing growth into 2010."