The number of million-dollar homes in Vancouver has been climbing over the last two years and market watchers are predicting yet another jump in property prices in 2008.

Property prices in downtown Vancouver are expected to climb again in 2008.
(CBC)

Although the real estate market is collapsing and foreclores are up 70 per cent in many parts of the United States, market watchers in B.C. said local housing prices are expected to rise nine per cent this year.

"Our economy is doing really well and we're getting lots of job growth," said Robyn Adamache, a senior market analyst with the Canada Mortgage and Housing Corporation.

"And we have over 30,000 people per year moving to the Lower Mainland region so these are the things that impact housing demand."

Robyn Adamache, a senior market analyst with the Canada Mortgage and Housing Corporation, said a healthy economy and strong job growth impact housing demand.
(CBC)

BC Assessment figures show 17,045 Vancouver properties were worth over $1 million in 2006, while the numbers jumped to 24,087 last year.

The figures also show assessments in Vancouver rose 25 per cent in 2006 and 12 per cent in 2007.

"Clearly the market still went up over the last year. It just didn't go up as fast as it had the previous year," said Jason Grant, an area assessor with BC Assessment.

Property prices will be held back by a couple of factors, Adamache said.

Realtor Ken Leong's townhouse in downtown Vancouver is worth over $1 million, compared to $641,000 three years ago when he pre-bought it.
(CBC)

Interest rates are expected to increase up to 3/4 of a point and, because of troubles south of the border, B.C. lenders won't be so willing to give additional breaks on mortgages, she said.

Ken Leong, a Vancouver realtor, said his Coal Harbour townhouse downtown has been assessed at over $1 million. He pre-bought it three years ago for $641,000 and said it's not what he thought a million-dollar home would be.

"I sell these kinds of properties every day, but when it's your own house and it's on a tax statement, it hits you a little bit differently," he said.

"I thought, you know, buying a million-dollar property would be like a big mansion somewhere with a lake, but it's a townhouse downtown."