Prices for all home types grew in 2014’s second quarter, according to Royal LePage’s house price survey released July 9, and these prices are expected to grow significantly by the end of 2014.
The biggest growth was seen in the average price of detached bungalows, which increased 5.2% to $1,107,290. Prices for two-storey homes increased 4.6% to $1,204,011.
Prices for standard condominiums stayed almost flat, increasing only 0.3% to an average of $491,984.
“Prices in Vancouver are up overall because of increased buying activity, due to continued low interest rates and a pent up demand leftover from a fairly slow start to 2014,” said Bill Binnie, broker and owner of Royal LePage North Shore.
“Sales are up this quarter due to more demand than we’ve seen in at least the past three years.”
Royal LePage forecasts Vancouver home price increases of 7.1% for the remainder of the year.
“The real estate environment is very stable right now, so the future of house prices depends a lot on interest rates. If the rates remain the same as they are currently, we can expect to see slow but steady price appreciation for the rest of the year,” Binnie said.
Inventory levels in the city are below the 10-year average, according to Chris Simmons, broker and owner of Royal LePage Westside.
“While there has been a steady supply of new housing being built over the last few years, the supply of listings has not increased markedly,” Simmons said.
Inventory levels are particularly low for detached bungalows, which is driving the prices higher. Condo inventories are continuously growing, keeping price increases lower.
Across Canada, home prices grew between 3.9% and 5.2% in 2014’s second quarter, with increases across all housing types. The national average price for detached bungalows grew 5.2% to $406,454. The price of two-storey homes increased 5.1% to $440,972 and standard condos increased 3.9% to $258,501. Royal LePage forecasts national average price growth of 5.1% for the year.