Less than a day after a prominent economic council warned soaring house prices could jeopardize Canada's financial stability, the price of property in Vancouver has hit an all-time high.
The benchmark price of a detached property in Metro Vancouver soared to $1,513,800 in May, up a whopping 36.9 per cent in a year, according to new figures released by the Real Estate Board of Greater Vancouver.
Prices of townhomes weren't far behind – the average price reaching $632,400 in Greater Vancouver, up 24.9 per cent since May 2015. Townhouse sales are up more than 50 per cent from this time last year, an expert told CTV News.
"Townhouses are getting people from both ends of the scale," realtor Keith Roy said.
"They're getting young families moving up the ladder who can't afford a house even if it has a suite, and they're getting boomers people in their mid-50s who are downsizing."
Apartments in Greater Vancouver saw a 22.3 per cent price increase in the past 12 months, according to REBGV figures, with the average unit now costing $485,000.
On Wednesday, the Organization for Economic Co-operation and Development said Canada needs to take action immediately to reduce the risk associated with soaring home prices, particularly in Toronto and Vancouver.
The agency said Canada's economy could be threatened if a price correction hit the country's two hottest housing markets, which make up one-third of the total market.
REBGV president Dan Morrison says it's still very much a sellers' market in Vancouver.
"Home sellers are becoming more active in recent months, although that activity is being outpaced by home buyer demand today," Morrison said in a news release.
Sales of residential properties in the region were 35 per cent higher than the 10-year average, and rank as the highest sales total on record for May.
Price of detached Vancouver home is now $1.5M. For perspective, this gem on a busy road is listed for $1.43M. pic.twitter.com/a8EaY7oF7p
— CTV Darcy (@darcynews) June 2, 2016