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Real Estate Trends

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

By Joannah Connolly Apr 17, 2015

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
Joannah Connolly is editorial director of Glacier Real Estate, Glacier Media's real estate division. Joannah writes and curates real estate news for Glacier Media's local newspaper websites, including the Vancouver Courier, North Shore News, Burnaby Now, Tri-City News and others. She also oversees editorial content in Real Estate Weekly Homes, West Coast Condo, Western Investor and Glacier's special real estate publications. A dual Canadian-British citizen, Joannah has 22 years of journalism and editing experience in Vancouver and London, with a background in construction, architecture, healthcare and business media. Joannah has appeared on major local TV outlets as a real estate commentator, has moderated and spoken on various industry panels, and spent two years hosting the Real Estate Therapist radio show on Roundhouse Radio.
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