Greater Vancouver House Prices See Double-Digit Increases in the Third Quarter of 2015

Richmond and Burnaby post highest year-over-year home price gains in the region

VANCOUVER, Oct. 14, 2015 /CNW/ - The Royal LePage House Price Survey¹ released today showed significant price appreciation in the year-over-year price of homes in Greater Vancouver. In the third quarter of 2015, the aggregate²  price of a home in the region rose 12.9 per cent year-over-year to $928,532.

Broken out by housing type, the median price for both bungalows and two-storey homes in Greater Vancouver saw double-digit increases year-over-year, jumping 19.4 per cent to $1,022,688 and 13.2 per cent to $1,224,805, respectively. During the same period, condominium prices saw a healthy appreciation of 4.0 per cent year-over-year to $462,719.

The most notable price increases in the region were seen in Richmond and Burnaby. On an aggregate level across housing types, home prices rose 20.2 per cent to $868,105 in Richmond and 18.4 per cent to $832,411 in Burnaby.

"Strong home price increases in Greater Vancouver are playing a significant role in the increases we are seeing at the national level," said Alan Stewart, regional manager, Royal LePage Sussex. "The strength of the British Columbia economy combined with newcomers moving 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."

Greater Vancouver Market Summaries

In the third quarter of 2015, the aggregate home price in central Vancouver increased 15.6 per cent year-over-year 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 per cent year-over-year to $1,925,491 and 28.0 per cent year-over-year to $1,212,852, respectively.

The aggregate home price in North Vancouver grew 8.7 per cent year-over-year to $1,024,884, due to limited supply of available listings in the market. According to Royal LePage real estate experts in the area, inventory levels are currently low as a result of homeowners deciding to hold on to their properties. The average age of a homeowner in North Vancouver is increasing and there are fewer first-time buyers entering the market.

According to local Royal LePage experts, West Vancouver is becoming a buyer's market as inventory levels increase. In the third quarter of 2015, the aggregate price in the region appreciated 3.2 per cent year-over-year to $2,391,407. Broken down by housing type, the median price of a bungalow spiked 13.8 per cent to $2,051,055, while a two-storey home saw a slight increase of 1.1 per cent to $2,775,782.

A significant amount of housing demand in Surrey is being driven by homebuyers coming from China, according to Royal LePage real estate experts. However, inventory in the area has not kept up with increased demand, resulting in a shortage of inventory. Condominium listings are down 5.0 per cent and bungalow listings are down 30 per cent approximately. As a result, the aggregate home price in Surrey has seen a strong increase of 8.0 per cent year-over-year to $619,554.

As baby boomers move out and international investor activity increases, Richmond is becoming a very strong seller's market. With declining inventory levels, the aggregate home price in Richmond has increased 20.2 per cent to $868,105 − the highest level of price appreciation in Greater Vancouver.

Though the aggregate home price in Langley has increased by 8.1 per cent year-over-year to $608,818, the area remains relatively affordable. This makes the area attractive to younger buyers who are moving to Langley from the west side of Greater Vancouver, noted Royal LePage real estate experts in the area.

Inventory remains low in Coquitlam, putting continued upward pressure on prices. In the third quarter, the aggregate price of a home in the region increased 8.2 per cent year-over-year to $750,319.

In the third quarter of 2015, the aggregate home price in Burnaby increased a notable 18.4 per cent year-over-year to $832,411, making it one of the highest gains seen in Greater Vancouver. Inventory levels remain low, which has created a seller's market in the area.

	Bungalows				Two-Storeys				Condominiums				Aggregate
Market	Q3 2015	Q2 2015	Q3 2014	YOY % Change	Q3 2015	Q2 2015	Q3 2014	YOY % Change	Q3 2015	Q2 2015	Q3 2014	YOY % Change	Q3 2015	Q2 2015	Q3 2014	YOY % Change
Greater Vancouver	$1,022,688	$974,370	$856,317	19.4%	$1,224,805	$1,198,361	$1,082,239	13.2%	$462,719	$453,697	$445,023	4.0%	$928,532	$903,122	$822,181	12.9%
Vancouver	$1,212,852	$1,114,846	$947,401	28.0%	$1,925,491	$1,903,956	$1,641,338	17.3%	$540,798	$529,474	$524,254	3.2%	$1,097,726	$1,065,586	$949,213	15.6%
North Vancouver	$1,181,819	$1,168,729	$1,041,106	13.5%	$1,267,113	$1,270,270	$1,184,651	7.0%	$412,870	$415,997	$408,857	1.0%	$1,024,884	$1,022,708	$943,004	8.7%
West Vancouver	$2,051,055	$1,993,391	$1,802,799	13.8%	$2,775,782	$2,746,742	$2,744,464	1.1%	$890,421	$892,511	$1,016,308	-12.4%	$2,391,407	$2,357,824	$2,317,724	3.2%
Surrey	$565,010	$562,399	$532,921	6.0%	$714,578	$697,686	$654,699	9.1%	$228,667	$231,544	$234,587	-2.5%	$619,554	$607,940	$573,841	8.0%
Richmond	$1,046,182	$996,969	$880,094	18.9%	$1,200,462	$1,111,150	$971,865	23.5%	$400,959	$388,090	$364,986	9.9%	$868,105	$813,355	$722,366	20.2%
Langley	$538,170	$538,464	$527,161	2.1%	$687,789	$666,908	$618,606	11.2%	$213,622	$210,895	$214,027	-0.2%	$608,818	$596,071	$563,205	8.1%
Coquitlam	$810,440	$778,529	$676,237	19.8%	$874,649	$877,498	$833,584	4.9%	$312,134	$317,964	$308,029	1.3%	$750,319	$745,182	$693,446	8.2%
Burnaby	$1,103,430	$1,052,663	$901,401	22.4%	$1,184,385	$1,144,914	$979,758	20.9%	$438,645	$424,484	$402,068	9.1%	$832,411	$801,079	$702,860	18.4%

Nationally, home prices showed moderate to strong year-over-year price increases in most markets in Canada.  According to the report, the price of a home in Canada increased 8.0 per cent year-over-year to $502,643 in the third quarter. The price of a two-storey home rose 9.9 percent year-over-year to $615,304, and the price of a bungalow increased 6.8 per cent to $421,757. During the same period, the price of a condominium increased 2.8 per cent to $338,684.

"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 Phil Soper, chief executive officer, Royal LePage. "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."

"Home ownership remains a bright light amid unsettled investment and savings options in volatile global capital markets.  As we lead up to election day, it's not surprising that all of the major political parties are acknowledging the housing sector's prominence as the foundation on which the economy has been built for years, and a critical foundation upon which Canadians can build their savings," continued Soper. 

Beginning this quarter, Royal LePage's House Price Survey includes the Royal LePage National House Price Composite comprising house values for 53 of the nation's largest real estate markets through the use of a proprietary, custom-built system that analyzes a housing database containing millions of real estate transactions. The enhancements are made possible through Royal LePage's collaboration with its sister company, Brookfield RPS, a leader in residential real estate data and analytics in Canada.

About the Royal LePage House Price Survey

The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 53 of the nation's largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, Brookfield RPS, the trusted source for residential real estate intelligence and analytics in Canada.  Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.

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.

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¹ Powered by Brookfield RPS
² Aggregate prices are calculated via a weighted average of the median values of homes in the regions surveyed 

SOURCE Royal LePage Real Estate Services

Eddie Tabakman, Kaiser Lachance Communications, 647-680-8316, [email protected]