Vancouver

Vancouver Will See Slowing House Price Growth in 2015: Royal LePage

Home prices in Vancouver likely to rise less than 3 per cent in 2015, with knock-on effect from sliding cost of oil, says Royal LePage survey

By
REW.ca
January 15, 2015






Vancouver Downtown and West Side

Home prices in Vancouver are likely to rise a modest 2.8 per cent in 2015, according to the Royal LePage quarterly house price survey released January 14.

This is the second-biggest predicted rise in Canada, after Toronto’s 4.5 per cent forecast, as price growth across the country slows because of economic factors such as the sliding cost of oil.

“For our 2015 forecast, we could not ignore the potential impact of the steep decline in the price of oil on housing markets across Canada,” said Phil Soper, president and chief executive of Royal LePage.

“We expect increased opportunity for homebuyers in Western Canada, but that opening is unlikely to last. Over the longer term, we foresee a return to regional home price appreciation that is above both the historical average and national trends in general, when energy markets recover.

“In the interim, slowed growth in the price of homes will be a welcome sign for many people in the West, especially in pricey markets like Vancouver where first-time buyers have been frustrated by a hypercompetitive market and home prices that have escalated at a feverish pace.”

Looking back over the previous quarter, Royal LePage reported that the continued short supply of single-family homes became the focus of intense demand from Vancouver buyers in the fourth quarter of 2014, increasing 7.5 per cent year-over-year to $1,124,642.

Standard two-storey homes in Vancouver increased 7.1 per cent to $1,233,182, while condominiums rose 3.8 per cent to $511,150.

Across the country, the average price of a home increased between 4.5 per cent and 6.7 per cent year-over-year. Nationally, the average price of detached bungalows rose 6.7 per cent to $406,218, while standard two-storey homes increased 6 per cent to $443,379 and standard condominiums saw a 4.5 per cent increase to $257,624.

Royal LePage expects Canadian home prices to increase moderately in 2015, forecasting a 2.9 per cent national increase for the year ahead.


Joannah Connolly has been editor and content manager of REW.ca since May 2014. Joannah has appeared on major local TV outlets as a real estate commentator, and has moderated and spoken on several industry panels. During this time, she also spent two years hosting the Real Estate Therapist radio show on Roundhouse Radio 98.3FM. A dual Canadian-British citizen, Joannah has 20 years of journalism experience in Vancouver and London, with a prior background in construction, architecture and business media.
© Copyright 2017

Comments

REW.ca welcomes your opinions and comments. We do not allow personal attacks, offensive language, unsubstantiated allegations or self-promotional content, including promotional website links. We reserve the right to unpublish comments, to edit them for length, style, legality and taste, and to reproduce them in print or online. For further information, please contact the editor or publisher, or see our Terms and Conditions.

comments powered by Disqus

Email to a Friend

Close