Metro Vancouver condo prices continue to skyrocket

The Royal LePage house price index showed that, for the first time since 2011, Canada’s five biggest cities were rising at a similar “healthy” pace in the low single digits.The number of homes sold is also down.

Well, if you’re looking for the most affordable spot to buy a home, you might want to try buying a condo in Surrey. At $304,779, that sounds like a bargain to us.

All data provided by Royal LePage.

Average cost of a condo in Metro Vancouver is now $622392

Miller said he expects inventory to trend downward, moving Saskatoon into a more balanced housing market.

“What’s interesting — the narrative that is playing itself out — is that if you currently own a condo, you’ve seen this tremendous jump in prices over the last 12 months, whereas if you are looking to move up in the market, that detached market has been flat. The gap to move up and graduate to the next level is actually shrinking,” he explains.

Toronto’s bigger market and more diverse economy support a milder correction, he said. It’s also more affordable. As expensive as the Toronto region is, Vancouver prices are significantly higher, said Soper.

“One is a very robust, active condo market which is seeing double-digit increases year-over-year, whereas if you look at the single-family market — detached homes and bungalows — they have been relatively flat over the same period,” he tells NEWS 1130.Quebec is now in the midst of what economists, and the province’s Minister of Finance, refer to as a “virtuous circle.” The province’s economy has been improving over the last few years, and confidence among businesses and individuals is rising, with both choosing to spend and invest, creating jobs and further stimulating the economy. Furthermore, the region is increasingly becoming a technology centre of excellence attracting industry giants such as Google, Amazon, Facebook and recently, Samsung. Technology is a growing sector for employment in the region and it should positively affect demand in the real estate market over the next few years.

Condominium prices have jumped up as much as 25 per cent in some areas compared to the third quarter a year ago.

Price index suggests affordability constraints driving buyers into condo market, putting “severe strain” on inventory”For now, the Toronto and Vancouver housing markets have returned to earth,” continued Soper. “After a period of unsustainable price inflation and sharp market corrections, we are seeing low single digit appreciation in each. Calgary has shaken off the oil-bust blues and Montreal appears to be at the beginning of a new era of economic prosperity. Rounding out the ‘big five,’ the Ottawa market is behaving like it usually does – a picture of healthy market growth.”North Vancouver – up 4.5%

He estimates the overall effect was that 30% to 40% of potential first-time homebuyers were taken out of the market, and many of those left could only afford a condo.

Alberta’s economy continues to rebound from its recession, and drilling activity has come back from last year’s levels. The price of West Texas Intermediate oil has averaged over $49 USD per barrel this year, and the Alberta government is forecasting a price of $55 USD per barrel in its 2017-18 budget. Over the past year, Alberta has added 13,000 jobs, and full-time employment has grown by 31,500. When looking to the housing market, many regions in the province have benefited from this recovery, with the aggregate price of a home in Calgary and Edmonton rising 5.0 per cent and 4.0 per cent year-over-year to $479,211 and $389,330, respectively.“Canadian housing is enjoying a Goldilocks moment,” said Soper in a news release. “Not too hot and not too cold.”

Increase in Toronto home prices quarter over quarter to a median price of $861,397

According to the Royal LePage Peak Millennial Survey released in August 2017, members of the largest cohort of the millennial demographic, or “peak millennials,” are concerned about high home values in Canada’s largest urban markets and job uncertainty in other regions. Eighty-seven per cent of Canadians aged 25 to 30 believe homeownership is a good investment, yet only 57 per cent believe they will be able to afford a house within the next half decade. Consequently, though 61 per cent of peak millennial purchasers would prefer to buy a detached home, only 36 per cent believe that they will realistically be able to find a property within the market segment. This has led many of these young people to look for property in the more affordable condominium category.

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