VANCOUVER (NEWS 1130) – Vancouver’s housing market continues to see high demand and low supply as competition from buyers over limited inventory of single-family homes pushes prices higher and higher.
The average residential sale price increased 17 per cent in Greater Vancouver to roughly $947,350. And as demand shows no sign of slowing down, both Vancouver and Toronto markets are expected to continue to see price appreciation in 2016, of seven per cent in Greater Vancouver and five per cent in the Greater Toronto Area.
“Based on the projections for Canada’s key housing markets, RE/MAX expects the average home price in Canada to increase 2.5 per cent in 2016,” says RE/MAX’s Gurinder Sandhu. “While we expect to see some price decreases, particularly in regions that rely on the oil and natural resource sectors, strong demand in Canada’s urban centres is expected to continue throughout next year.”
Cities outside of the Vancouver boundary are seeing significant year-over-year price increases as a result, for example, Victoria and the Fraser Valley both saw jumps of more than 10 per cent in prices.
The federal Department of Finance is considering increasing the minimum down payment for homes above $500,000 on a graduated scale. If approved, the effect on first-time buyers in many of the country’s housing markets will be minimal, according to RE/MAX. However, in Vancouver and Toronto, where entry-level homes are often above the $500,000 threshold, these restrictions may be discouraging for anyone trying to break into the market for the first time.
The trend of new Canadians snapping up properties in cities like Vancouver is expected to continue next year.