Sales in Vancouver have dipped slightly but demand still outstrips supply
Wency Leung
Sun
The average price of a “standard” two-storey home on Vancouver’s west side broke the million-dollar mark during the first three months of 2006. Photograph by : Vancouver Sun
The average price of a “standard” two-storey home on Vancouver’s west side broke the million-dollar mark during the first three months of 2006 as housing prices surged throughout the city, real estate firm Royal LePage reported Wednesday.
A standard two-storey home on the west side reached an average $1.05 million, up 16.7 per cent compared with the first quarter last year, according to Royal LePage’s House Price Survey.
The survey defines a standard two-storey as a three-bedroom home with a detached garage and full basement but no rec room, totalling 1,500 square feet, and located on a 3,500-square-foot lot.
The same type of home located east of Main Street appreciated 12.9 per cent compared with last year, to $470,000.
“Prices have historically always been greater on the west side of Vancouver,” said Bill Binnie, president of Royal LePage Northshore. While the same amenities are available in both areas, Binnie said people are simply willing to pay more to live in the west side.
While sales activity in the city dipped slightly, housing price increases throughout Vancouver were among the most dramatic in the country, next to Calgary and Edmonton, the survey said.
Royal LePage attributed the city’s rising home prices to strong consumer confidence and solid economic growth, which has caused demand to outpace supply.
An influx of Chinese visitors as a result of an expected easing of travel restrictions by Beijing, and the 2010 Winter Olympics, will likely to continue to push job growth in Vancouver and boost the housing market, the company said.
Binnie noted that relatively low interest rates also keep the housing market upbeat.
Binnie said the rate of price appreciation this year will likely not be as sharp as last year, however, as he anticipated affordability issues will keep prices in check.
“Prices are starting to moderate,” he said.
The average price of a two-bedroom condominium in the city was up 17 per cent from the year-ago period at $353,000; a detached bungalow increased 16.9 per cent to $668,500; and a two-storey house rose 15.7 per cent to $757,750 — all well above national averages.
Rising housing costs, however, are making it increasingly difficult for lower- and middle-income households to afford to live in the city, said Leslie Stern, project coordinator for Lower Mainland Network for Affordable Housing.
Families earning $40,000 to $60,000 a year are hard pressed to obtain mortgages, Stern said, adding that single people are finding it even tougher to purchase residential property.
“Whether it’s young families, seniors, youth . . . they’re all losing out,” Stern said. “We really need a strategy to create housing that is affordable for all income levels.”
Victoria‘s housing market showed more modest appreciation in the first three months of this year, stabilizing due to a 10-per-cent increase in available homes on the market, Royal LePage said.
A standard two-storey house in the provincial capital rose 13.6 per cent to $399,900 compared with last year, while the average price of a condominium rose 11.5 per cent to $223,00, and a detached bungalow edged up 8.3 per cent to $352,000.
LOCATION, LOCATION, LOCATION:
In real estate, it is often said, location is everything, and that is clearly demonstrated in Vancouver