Photo: James Bombales
Greater Vancouver home price growth has eased this year with the introduction of a new mortgage stress test, higher interest rates and new BC housing policies. That didn’t stop condo prices from soaring to new heights last quarter, and market experts expect further growth in the coming months.
In the second quarter of 2018, the median price of a condo hit $692,452 — a whopping 18.4 per cent increase from Q2 2017, according to the Royal LePage House Price Survey, released today.
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“Condominium prices continue to grow at unprecedented levels across Greater Vancouver,” says Vancouver-based realtor Adil Dinani, in a press release.
“Purchasers look to condominiums for relative affordability, yet with competition continuing to intensify, property values within the segment now outstrip most detached markets across the country,” he adds.
On a quarterly basis, the Canadian real estate company releases its House Price Survey which provides data on the three most common types of housing in Canada (two-storey, bungalows and condos), in 63 of the country’s largest housing markets.
While condo prices continued to skyrocket last quarter, the median price of a two-storey home and bungalow saw a more moderate annual increase, rising 5.6 per cent and 4.1 per cent year-over-year to $1,564,303 and $1,443,105, respectively.
Last quarter, the aggregate home price in Greater Vancouver rose 7.2 per cent year-over-year to $1,269,816.
According to Royal LePage, the introduction of new mortgage rules in January, coupled with affordability constraints, continued to price many purchasers out of the region’s detached market last quarter.
In turn, many homebuyers continued to opt for the more affordable homeownership option, condos. But, with condo prices appreciating at rapid speed, homebuyers are paying a significant amount to enter the market.
“To put it into perspective, the budget now needed to purchase a condo could have netted someone a two-storey home here in Greater Vancouver four years ago,” says Dinani.
Looking ahead, Royal LePage predicts that Greater Vancouver’s condo segment will continue to place upward pressure on the overall aggregate price next quarter. The aggregate price is expected to rise by 1.5 per cent quarter-over-quarter to $1,289,120.