The New Year started out with a bang for Metro Vancouver real estate, with a big jump in the price of detached homes.
The Real Estate Board of Greater Vancouver released new figures Tuesday that showed the typical detached property in the area increased 8.4 per cent from January 2014 to $1,010,000. The benchmark price for all residential properties in Metro Vancouver is $641,600.
It also showed the number of home sales in Greater Vancouver was higher last month than the average over the past decade. While the number of sales increased nearly 15 per cent for the month of January, there are fewer homes for sale.
“While demand remains steady, we’re seeing fewer homes for sale at the moment,” said Greater Vancouver Real Estate Board president Ray Harris in a release. "This is creating greater competition amongst buyers, particularly in the detached home market. The number of detached homes listed for sale today is the second lowest we’ve seen in four years.”
The Bank of Canada lowered the benchmark interest rate from one per cent to 0.75 per cent on Jan. 21 to lessen the blow of dropping oil prices.
This rate cut by the central bank likely means lower interest rates for variable rate mortgages, lines of credit and other loans based on the prime rate, and will likely boost consumer spending.
“A reduced rate could allow you to pay down your mortgage a little faster, save some money on your monthly payments, or change the amount you qualify for,” Harris said. “It’s important that you do your homework and understand how these announcements impact your situation.”
Apartment property sales in January went up 7.4 per cent from the same month last year, and jumped 40.5 per cent from January 2013.
The Real Estate Board defines the benchmark price as one designed to represent a typical residential property in a particular housing market.
With files from the Canadian Press
