The aggregate price of a Vancouver home surged during the second business quarter this year, setting a trajectory for further price growth by the end of 2021.
New data released this week in Royal LePage’s House Price Survey found that the aggregate home price in Greater Vancouver increased by 19.6 percent year-over-year in Q2, setting the aggregate property value at $1,202,500. In the fourth quarter of 2021, the aggregate price in Greater Vancouver is expected to rise by 15 percent annually to $1,265,000.
The survey provides data insights nationally and from 62 of Canada’s largest real estate markets, including Greater Vancouver. Home values included in the survey are based off of the Royal LePage National House Price Composite, which is produced quarterly by Royal LePage’s sister company, RPS Real Property Solutions.
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During the second business quarter of 2021, Royal LePage’s sister company, RPS Real Property Solutions said in its report that the company revised its House Price Survey methodology, which includes geographical boundaries and housing types. The report clarifies that aggregate prices are calculated using a weighted average of the median values of all collected housing types in order to improve accuracy.
The median price of a single-family detached house in Greater Vancouver jumped 24.9 percent to $1,625,000 in Q2. This is a steep hike compared to the median price of a condominium, which rose by 9.4 percent to $700,000 during the same period.
In the city of Vancouver, price growth between single-family and condominium types continued to widen. For single-family homes, the median price increased 14.6 percent to $2,350,000, while median prices for condos grew by just 4.4 percent to $774,000. Across the city of Vancouver as a whole, the aggregate price of a home was up 11.5 percent annually in Q2 to $1,305,000.
While home inventory is climbing and demand is tapering off into the summer months, Randy Ryalls, the general manager at Royal LePage Sterling Realty, said in the report that Vancouver is still in a seller’s market.
“Although not at the levels seen in April, competition remains high and continues to put upward pressure on prices,” said Ryalls. “This is especially true in the single-family segment, where demand from local move-up buyers is strong.”
Ryalls expects that the Vancouver market will see some relief this summer as pandemic restrictions dissolve and buyer fatigue sets in.
Nationally, the aggregate price of a home in Canada rose by 25.3 percent annually during the second quarter of 2021, amounting to $727,000. Of the regions analyzed in the report, 89 percent experienced double-digit aggregate price increases year-over-year, a result mainly attributed to price gains seen in the detached, single-family property segment, Royal LePage says.
In the fourth quarter, Royal LePage predicts that the aggregate price of a home in Canada will increase 16 percent annually to $771,500. This is an upward revision from the brokerage’s previous forecast published in April. Although the rate of price appreciation is decreasing, increased demand from foreign students, newcomers and investors in the fall is anticipated as additional COVID-19 restrictions are lifted.
“Finally, we will welcome back hundreds of thousands of foreign students and a new wave of immigration,” said Phil Soper, president and CEO of Royal LePage, in the report’s release. “All of these people need to put a roof over their heads, which will encourage a wave of entrepreneurial landlords – investors eager to provide rental accommodation.”
“These new sources of demand should sustain the housing market at buoyant levels through the all-important spring market in 2022,” he added.