Despite the recent introduction of a foreign buyers tax slowing sales in the province, Vancouver’s housing prices show no sign of lowering anytime soon.
Royal LePage released their third quarter numbers for 2016, and according to the company prices surged 30.6% year-over-year to $1,194,653.
The median price of two bedroom detached homes and bungalows rose even more (33.5% and 33.4% respectively) during the same time period. Two bedroom homes rose year-over-year to $1,578,601, and bungalows climbed to $1,288,250.
In the report, Royal LePage notes that the introduction of the foreign buyers tax doesn’t appear to have affected home prices despite waining sales – however, prices may soon catch up to the lower demand.
“Much of the momentum experienced at the beginning of the year has continued to fuel the market, with quality listings still receiving a considerable amount of attention from buyers,” says general manager of Royal LePage Randy Ryalls in a release.
“This may continue to change in the coming months however, as prices tend to lag sales activity. We could very well be headed for a more balanced market with both foreign and domestic interest beginning to normalize due to steep home price appreciation, general uncertainty, high taxation and tightened mortgage regulations.”
Part of the slow down in sales is as a result of the foreign buyers tax creating uncertainty in the market too, the report says.
West Vancouver experienced the greatest increase in prices year-over-year, with two-storey properties spiking more than 40%. The City of Vancouver saw rises of 34.1%, while Richmond hovered around 34.3%.
Across Canada, home prices rose 12% year-over-year to $545,414.
“Across Canada, our real estate markets remain healthy, with home values showing modest to strong (yet rational) price appreciation in almost every Canadian city,” says Phil Soper, president and CEO of Royal LePage in a statement. “Even in the hardest hit oil patch regions, prices have held up well, with small single-digit declines, year-over-year.”