Vancouver House Price Growth Forecast Doubled for 2015: Re/MAX

Predicted gains in Vancouver and Toronto enough to push up overall national average price growth outlook

By
REW.ca
April 17, 2015






Vancouver Burrard False Creek

In an unexpected move, one of the country’s largest real estate companies revised its national 2015 house price growth projections April 17, citing higher-than-anticipated demand and low inventory in Vancouver and Toronto.

Re/MAX amended its prediction of the annual rise in the price of an average Vancouver home to six per cent in 2015 – double the three per cent that Re/MAX forecast just a few months ago.

It also predicted that prices in Toronto would rise seven per cent this year, up from its original estimate of four per cent.

The increases anticipated in the country’s two hottest real estate markets were enough to push Re/MAX’s national price growth projections up 0.5 percentage points to three per cent in 2015.

In its focus on Vancouver, Re/MAX observed the continued interest from overseas investors and the scarcity of single-family homes as factors driving up prices.

The report also commented on the “emerging trend” of an increase in US buyers, which is a rising investor base as the loonie continues to perform low against the US dollar.

The nationwide Re/MAX report also shone a spotlight on Victoria and Kelowna. It predicted that Victoria would continue to see steady growth, and maintained its price-rise projections at four per cent over 2015 for the city.

Kelowna’s average prices have dropped slightly and may have been adversely affected by low oil prices keeping Albertan recreational property investors away, although Re/MAX’s position is that the low dollar will boost activity and restore balance.

Re/MAX stated that the Interior city’s balanced market could move into a sellers’ market later in the year, anticipating growing demand, but nevertheless reduced its price-growth forecast from seven per cent to five per cent in 2015.


Joannah Connolly is the editor and content manager of REW.ca and Real Estate Weekly newspaper, and editor-in-chief of Western Investor and West Coast Condominium. She also moonlights as the host of the Real Estate Therapist call-in show on Roundhouse Radio 98.3FM every Saturday, 9-10am. A dual Canadian-British citizen, Joannah has 20 years of media experience in Vancouver and London, with a background in construction, architecture and business media. Like many of the residents of her newly adopted town, Joannah has a decidedly unhealthy passion for Vancouver real estate and is often to be found scouring property listings well above her pay grade.
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