The average price for a detached home in the Greater Vancouver area is now over $1 million, according to statistics from the Real Estate Board of Greater Vancouver.
That’s up 8.1 per cent from a year ago and more than 27 per cent in the last five years and comes at the end of a year of hot sales of Vancouver area real estate.
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The number of sales of all properties, from apartment and condos to houses, reached 33,116, a 16.1 per cent increase from the 28,524 sales recorded in 2013. That’s no record as half the years in the last 10 have seen more sales.
The composite benchmark price for all residential properties in Metro Vancouver ends the year at $638,500, but that’s much higher in parts of the city, such as West Vancouver, where the composite price is $1.6 million.
In Greater Vancouver, Burnaby North, Burnaby South, North Vancouver and Richmond, the average price of a detached home is over $1 million.
“Detached homes continue to be the most sought after property type in our market,” Ray Harris, president of the REBGV, said in a news release.
“Detached homes in Metro Vancouver have increased 8.1 per cent in value over the last 12 months while townhome and condominium properties have increased 4.5 and 3.5 per cent over the same period,” he added.
Re/Max, one of Canada’s largest realtors, is predicting home prices in Vancouver will rise by three per cent in 2015. Inventory of single-family homes is at a record low and demand continues to climb, Re/Max said in its outlook for 2015.
Across Canada, Re/Max forecasts a 2.5 per cent increase in house prices with most cities to see the average sale price remaining stable or rising only modestly.
Canada’s other hot market, Toronto, could see prices soar by four per cent, it predicts.
“Housing demand is being supported by steady employment and immigration, while our GDP is expected to grow another 2.5 per cent in 2015,” said Gurinder Sandu, Re/Max Integra regional director for Ontario and the Atlantic region.
“This is mitigating the effects of higher inventory, which many markets have been experiencing due to increased development.”
Historically, low interest rates have helped sustain demand and the prospect of an interest rate hike later in 2015 could potentially mean a spike in real estate purchases as prospective home owners snap up homes ahead of a rate hike, Re/Max said.