VANCOUVER HOMES POST STRONG YEAR-OVER-YEAR PRICE GAINS
Low interest rates continue to attract buyers but prices are down from their early 2010 peaks
VANCOUVER, Oct. 19 /CNW/ - The Royal LePage House Price Survey released today showed that year-over-year prices are up for all housing types surveyed in Vancouver but third quarter prices - along with unit sales - are down from their early 2010 peaks. Despite the slowdown, historically low interest rates are still drawing buyers into the market.
City-wide, average detached bungalow prices rose 8.8 per cent year-over-year to $873,500. Standard two-storey homes were up 8.0 per cent to an average price of $977,250 while standard condominiums increased 10.2 per cent to $491,000 in year-over-year comparisons.
"Our market has cooled since the beginning of the year," says Bill Binnie, broker and owner of Royal LePage North Shore. "To put things in perspective, however, third quarter unit sales are up 40 per cent over the same period of 2008. Overall, we've got a healthy, balanced market in Vancouver."
Vancouver homes are typically selling below asking price, and the 2010 residential real estate market to-date is approximately 10 per cent slower than the same period last year. New home sales in general are down, and condos in particular are moving slowly.
"The HST could be having an impact," says Chris Simmons, broker and owner of Royal LePage Sunshine Coast. "The third quarter has slowed down in terms of units sold, but that's compared to a busy first half of the year - when we were breaking records."
Vancouver East saw the largest year-over-year price gains, with standard condominiums increasing 20.2 per cent to $429,000, standard two-stories up 15.9 per cent to $729,000, and detached bungalows gaining 10 per cent to $649,000. Standard condominiums in West Vancouver were up 9.5 per cent year-over-year to $460,000, and detached bungalows in the same municipality were up 9.1 per cent over last year to $960,000. Selling for a third-quarter average of $1,350,000, detached two-stories in Vancouver's West Side remained 8 per cent above last year's third-quarter average.
"Despite a slower market," says Binnie. "Any well-priced property can attract multiple offers."
Nationally, Canada's residential real estate market saw year-over-year growth in the third quarter as fears of a double dip recession or a housing bubble faded. House price appreciation slowed to a more modest five per cent in the quarter, which is historically typical of balanced real estate markets.
"Most Canadian housing markets cooled in the third quarter. In fact, the year is unfolding much as we predicted, with the unusually active first half of 2010 giving way to slower markets in the later part of the year. Helped by very low rates in a competitive mortgage financing market, the third quarter was slightly stronger than anticipated, on new demand fuelled by improved affordability in many regions," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. Looking ahead, it is very unlikely that the period from now to year-end can keep pace with the activity levels posted in the overheated market of the final quarter of 2009."
In the third quarter, the average price of a detached bungalow in Canada was up 4.6 percent to $324,531, compared to a year ago. Over the same period, standard two-storey homes rose 4.4 percent to $360,329 while standard condominiums rose 3.9 percent to $226,481.
"House price growth now sits just below the long term annual average of approximately five per cent, but once this is adjusted for inflation, which is very low and expected to continue to be that way for some time, appreciation is right on track. Canadian homeowners will be pleased," said Soper.
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 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the third quarter. A printable version of the third quarter 2010 survey will be available online on November 5th, 2010.
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. Historical data is available for some areas back to the early 1970s.
About Royal LePage
Royal LePage is Canada's leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage is the only Canadian real estate company to have its own charitable foundation; the Shelter Foundation which is dedicated exclusively to funding women's shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Real Living, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol "BRE.UN."
For more information visit www.royallepage.ca.
For further information:
Jeremy Twigg
Fleishman-Hillard Canada
604-688-2505
Tammy Gilmer
Director, Public Relations and National Communications
Royal LePage Real Estate Services
416-510-5783
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