Vancouver house prices were up across the board in the fourth quarter of 2014, a trend that is expected to continue in 2015 — albeit on a more modest scale.
According to Royal LePage’s fourth quarter real estate report, average home prices climbed between 3.8 and 7.5 per cent year-over-year, depending on property type.
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Condo price growth was more measured because, according to Royal LePage, “this segment is able to continually supply more units to keep up with changing demands and market dynamics.” Single-family homes, meanwhile, continue to be the focus of intense demand from would-be homebuyers.
“A substantial premium is being paid for two-storey homes and bungalows, which are rare commodities these days,” said Royal LePage spokesperson Chris Simmons. “Overwhelming demand for a limited supply is understandably pushing average prices upward.”
The market in 2015
Looking ahead, Royal LePage forecasts that home prices in Vancouver will rise 2.8 per cent this year.
According to Simmons, current market dynamics look remarkably similar to those at the beginning of last year, suggesting comparable price growth is likely in 2015.
“We expect single family homes to continue demanding premium prices while condominiums will see minor gains. Overall activity should be slightly higher this year as we do not anticipate a repeat of the sluggish start we saw during the first quarter last year,” he added.
Nationally, Royal LePage reports that home prices showed modest to healthy year-over-year gains in most markets in the fourth quarter of 2014. For more in-depth analysis on the Canada-wide picture, see our earlier coverage here.