Go to Main Content

Advertisement

By Special to MoneySense on April 18, 2017
Estimated reading time: 2 minutes

Signs Vancouver housing correction may be over

By Special to MoneySense on April 18, 2017
Estimated reading time: 2 minutes

Home price rose 12.3% year-over-year in Greater Vancouver

Advertisement

TORONTO — Royal LePage says early evidence suggests that the recent correction in Vancouver’s housing market may be short-lived. The realtor released a report Tuesday saying Canada’s two largest real estate markets continued their divergence in the first quarter of the year. The aggregate price of a home in the Greater Toronto Area rose by an “unprecedented” 20 per cent across all housing types to $759,241 in the first three months of 2017.

Where to Buy Canadian Real Estate 2017 »

In the Greater Vancouver area, the price of a home rose 12.3 per cent year-over-year to $1,179,482. Royal LePage CEO Phil Soper says the housing correction in Vancouver began seven months ago, around the time that the B.C. government introduced a 15 per cent tax on foreign nationals buying real estate in the city. Sales volumes then plunged and prices slowed their torrid upwards trajectory. But just in the past month, sales in the Vancouver area have leapt forward by close to 50 per cent on a month-over-month basis, says Soper — better than the seasonal average.

Top Greater Vancouver neighbourhoods »

“An unfortunate side effect of heavy-handed regulatory intervention is that we risk market whiplash,” Soper said in a statement. “In the coming weeks, it is possible that six months of pent-up demand will be unleashed on the market, sending prices sharply upward again; this when the pre-intervention 2016 trend was a natural market slowdown based on eroding affordability.” Across Canada, the aggregate price of a home grew 12.6 per cent year-over-year to $574,575 during the first quarter, Royal LePage said. The price of a two-storey home climbed 13.9 per cent year-over-year to $681,728, while the price of a bungalow rose 10.9 per cent to $490,018. Condo prices increased by 8.9 per cent to $373,768. In Calgary, home prices were up 0.6 per cent to $461,635, while in Edmonton they rose 0.3 per cent to $381,733.

Watch: The best spots to buy in Vancouver

[bc_video video_id=”6023927815001″ account_id=”6015698167001″ player_id=”lYro6suIR”]

Comments Cancel reply

Related Articles

Canadian holding a cellphone, considering making a complaint against mobile provider.

Complaints against Rogers, Bell and other Canadian telcos at record levels

Increased phone, internet, and television service customer complaints were reported from 2023 to 2024, according to a watchdog report.

Complaints against Rogers, Bell and other Canadian telcos at record levels

Should I cash my RRSP to pay off my mortgage?

Four reasons why you might not want to tap your RRSPs to become mortgage-free.

Should I cash my RRSP to pay off my mortgage?

Canadian deciding between debt and investing holds two piggy banks.

Invest or pay off debt: A comprehensive guide for Canadians

Is it better to invest your money or use it to pay down your mortgage or other debt? It...

Invest or pay off debt: A comprehensive guide for Canadians

A middle-aged couple dance in their new condo

Cash Allocation

Your home sold—now what?

Your home sold—now what?

Justin Trudeau announces his resignation at a press conference

CRA to continue administering changes to capital gains tax during prorogation

The increase to the capital gains inclusion rate is going ahead—at least for now, says Canada’s Finance Department.

CRA to continue administering changes to capital gains tax during prorogation

A man holds a miniature wooden home in his hands

The best 5-year fixed mortgage rates in Canada

You have so many options for finding the best mortgage rate for you. Here’s how you can compare some...

The best 5-year fixed mortgage rates in Canada

A woman uses her phone and laptop on a sunny patio with a cocktail

10 financial buzzwords we kept hearing in 2024

These 10 words and phrases captured 2024’s financial mood. From coffee badging to underconsumption-core, these are the trends on...

10 financial buzzwords we kept hearing in 2024

A man and woman consider paint chips in their new condo

How changes to the Home Buyers’ Plan could affect your down payment

How changes to the Home Buyers’ Plan could affect your down payment

A smiling young woman takes a selfie in her new home.

Unsure about buying a home? Why you should open an FHSA now anyway

Unsure about buying a home? Why you should open an FHSA now anyway

Canadian couple outside of home, wondering if they should transfer it to their corporation.

Is transferring your principal residence to your corporation a good idea?

Would swapping a house for cash from a corporation save on taxes? And is this tactic worth it in...

Is transferring your principal residence to your corporation a good idea?