Royal LePage press release – The housing market in Vancouver and Victoria started the year off on a strong note as average house prices increased, year-over-year, according to a report released today by Royal LePage Real Estate Services.
In both cities, strong local economies combined with growing populations resulted in price appreciations in all neighbourhoods surveyed in Vancouver and Victoria. While inventory increased slightly from the same period in 2006, strong demand has maintained market activity.
In Vancouver, the highest price appreciation experienced was among condominiums, which increased by 14.3% to $403,500, while the average price of a detached bungalow rose by 13.4% to $758,000, year-over-year. The average price of a standard two-storey property rose by 10.5% to $837,500, compared to the same period in 2006.
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"The housing market in Vancouver continued to show its strength in the first quarter, supported by sustained in-migration and growth across the city," said Bill Binnie, president, Royal LePage Northshore, Vancouver. "We are seeing the market operate only slightly off record levels which were recorded last year, with more sustainable, but still significant, rates of price appreciation."
New inventory was unable to satiate the demand of purchasers. The market remained firmly in the sellers’ favour, with multiple offer situations occurring, although less frequently than last year.
Added Binnie: "The condominium market in Vancouver has been particularly active in the first quarter, attracting the interest of a variety of purchaser groups such as baby boomers, first-time and move-up buyers and investors. These purchasers favour condominiums for their relative affordability, maintenance-free lifestyle and excellent investment potential."
The average price of a standard condominium in North Vancouver had the highest appreciation in the area with an increase of 11.1%, year-over-year, to $300,000. The average value of a standard two-storey home rose by 9.8%, year-over-year, to $670,000, while the price of a detached bungalow increased by 8.6% to $630,000.
In West Vancouver, the average price of a standard condominium increased by 12.2% to $415,000, year-over-year, followed by a detached bungalow which increased by 10.6% to $885,000. The average price of a standard two-storey home in the area rose by 12.8% to $880,000.
In Vancouver East, the standard condominium enjoyed the highest price appreciation, year-over-year, increasing by 21.1% to $299,000. The average price of a detached bungalow home rose by 15.6% to $542,000, while the average price of a standard two-storey home increased by 15.1% to $565,000.
In Vancouver West, the average price of a standard condominium increased by 14.3% year-over-year, to $600,000. The average price of a detached bungalow appreciated by 18.2% year-over-year to $975,000, and the average value of a standard two-storey home increased to $1,175,000, an 11.9% rise.
Victoria
The first quarter of 2007 saw average house prices in Victoria increase moderately, year-over-year, as the city’s continued strong economy, high in-migration levels and affordable mortgage rates maintained buyer demand. Also contributing to the increase in activity of resale homes was the limited but growing inventory, and high costs of rental units.
Standard two-storey properties increased by 4.5%, year-over-year, during the first quarter to $418,000. The average price of a standard condominium in the city increased by 11.2% to $248,000, while detached bungalows increased by 9.2% to $384,500, year-over-year.
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"Real estate activity in Victoria has been outstanding during the first three months of the year, and all indicators point to an equally great, if not better, spring market," said Judy Gage, president, Royal LePage Coast Capital Realty, Victoria. "Victoria remains a destination of choice for many Canadians as the pleasant weather and strong labour market continue to lure people from the east."
Victoria’s market has moved away from the wild pace that characterized the city for the past two years to balanced conditions, with an increase in listing inventory. The rise in available properties has provided buyers with more choice and more time to make their purchasing decisions.
Multiple offer situations were common on well-priced houses with buyer appeal, but were occurring with less frequency than last year.
Added Gage: "All types of buyers have been active during the first quarter with bungalows, detached homes and condominiums all receiving equal attention. Homes with rentable suites continue to have appeal, as the added income is a huge bonus for homebuyers – especially first-time buyers."
The Royal LePage Survey of Canadian House Prices 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, and current figures will be updated following the end of the first quarter. A printable version of the first quarter 2007 survey will be available online on May 15, 2007.
See also:
Canadian housing market 1Q 2007, national, municipal figures
Tags: vancouver, housing, property, real estate, victoria, home prices, house prices
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