The cost of buying a home in Greater Vancouver has risen steadily over the past year, and prices of detached homes have seen double-digit increases across the region.
The average price of all home types in 2015’s third quarter was $928,532 – an increase of 12.9% compared with the same period last year. Leading the way were detached bungalows, which saw an average price increase of 19.4% to $1,022,688. Prices of two-storey homes increased 13.2% to an average of $1,224,805.
The average price of standard condos across the region was also up, but by a much lower 4%, to $462,719.
“Strong home price increases in Greater Vancouver are playing a significant role in the increases we are seeing at the national level,” said Royal LePage Sussex regional manager Alan Stewart. “The strength of the British Columbia economy, combined with newcomers to the province, continues to drive the local housing market.
“Although Vancouver job growth is currently lagging behind the national average, dramatic appreciation in the housing market can be partly attributed to an inflow of retirees and international buyers.”
By region
Central Vancouver
In central Vancouver, the average home price increased 15.6% to $1,097,726.
“With few detached homes available in central Vancouver, the two-storey and bungalow segment is very competitive, supporting strong price appreciation for these housing types, up 17.3% year-over-year to $1,925,491 and 28% year-over year to $1,212,852, respectively,” Royal LePage said.
North Vancouver
The average age of homeowners in North Vancouver is on the rise and there is a limited number of first-time buyers in this area. As a result, overall listings were limited, and prices grew 8.7% over the past year, reaching an average of $1,024,884.
West Vancouver
Royal LePage said West Vancouver is a buyer’s market as listings have increased. The average price has grown 3.2% over the past year to $2,391,407. Once again, bungalows led the way, increasing 13.8% to $2,051,055. Two-storey homes increased a modest 1.1% to $2,775,782.
Richmond
Inventories have fallen in Richmond, resulting in the average price growing 20.2% to $868,105. This is the highest price increase in Greater Vancouver.
“As baby boomers move out and international investor activity increases, Richmond is becoming a very strong seller’s market,” Royal LePage said.
Burnaby
Burnaby had one of the region’s biggest increases at 18.4%, with the average home price reaching $832,411. Low inventories have led to a seller’s market in this area.
Coquitlam
As in Richmond, inventories are low in Coquitlam, and the average home price has increased 8.2% over the past year to $750,319.
Surrey
Buyers from China are driving demand in Surrey, Royal LePage said, and an inventory shortage has let to an 8% increase over the past year to an average home price of $619,554.
Nationally
Vancouver is leading the way in terms of price increases across Canada. Country-wide, home prices of all types increased an average of 8.0% to $502,643. Detached home prices increased 6.8% to $421,757, two-storey homes were up 9.9% to $615,304 and condos increased 2.7% to $338,945.
“Economic slowdowns in energy-dependent markets, most notably in western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Royal LePage chief executive officer Phil Soper.
“In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families.”
@EmmaHampelBIV
