As expected with changing living preferences due to COVID-19, and aligning with other industry data, Metro Vancouver’s prices for single-family detached homes have been rising faster than condominiums, according to a new report.
A market update by Royal LePage states the median price of a bungalow has increased by 6.8% year-over-year to $1.265 million, and a standard two-storey home has increased by 8.8% year-over-year to $1.507 million, based on fourth quarter data for 2020.
In contrast, over the same period, the median price of a condominium home went up by 3.3% year-over-year to $662,120. The aggregate price of a home in the region increased by 7.2% year-over-year to $1.55 million.
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For the city of Vancouver, the median price of a bungalow went up by 4.1% year-over-year to $1.424 million, while the median price for a standard two-storey home increased by 7.3% year-over-year to $2.114 million. Over the same period, the median price of a condominium grew by 3.9% year-over-year to $784,351.
The pandemic shifted some of the preferences of condominium dwellers, with greater numbers seeking larger living spaces.
The number of new listings slowed down towards the end of 2020, and the overall number of active listings also dwindled, partially due to heavy buyer demand.
“Multiple offers were common throughout the fourth quarter, and almost every detached home was attracting competitive bids. Buyer confidence is strong, and current low-interest rates make purchasing even more attractive,” said Randy Ryalls, general manager of Royal LePage Sterling Realty, in a statement.
“Buyers are worried they will be priced out of the market, and with our low inventory of homes for sale in the region, prices are expected to go up in the spring.”
Royal LePage is currently forecasting that the aggregate price of a home in Metro Vancouver will increase by 9% year-over-year in the fourth quarter of 2021.
“Confined to their homes, Canadians are struggling to adapt their properties to accommodate the need for an office, school classroom and gym, and find themselves longing for more living space,” said Phil Soper, president and CEO of Royal LePage.
“Yet buying a house is not like buying a car; for most, it is a long-term commitment. Post-crisis, some employers will be accommodating of work-from-home employee requests, and some businesses will require that their teams work together in offices again. Many will adopt a hybrid model.”