All-time high: Price of Vancouver detached home hits $1 million
The City of Glass has hit a new all-time high for home prices.
The benchmark home price index hit $1,002,200 last month for detached single-family properties in Greater Vancouver, according to new figures released by the Real Estate Board of Greater Vancouver.
That’s an 8.1 per cent price increase since Dec. 2013.
Overall, the board reported a 16 per cent spike in the total sales of both detached and attached properties and apartments in 2014, with 33,116 sold.
There was only a slight bump in the number of properties listed for sale on MLS – up 2.4 per cent from 2013.
“While home buyer and seller activity created balanced market conditions within the region, we also experienced some upward pressure on home prices over the course of the year,” REBGV President Ray Harris said in a statement.
The benchmark price for all residential properties in the region reached $638,500 in Dec. 2013, a 5.8 per cent increase from the year before.
But the spike in prices hasn’t led to a decrease in demand, especially when it comes to single-family homes in Greater Vancouver.
“Detached homes continue to be the most sought after property type in our market,” Harris said.
According to its figures, detached homes have increased 8.1 per cent in the past 12 months. Compare that against the 4.5 and 3.5 per cent jumps for townhomes and condominiums, respectively.
The benchmark price of an apartment in Greater Vancouver now sits at $380,700, according to the index.
Last summer, a global credit ratings agency said Canada’s housing prices are overvalued by a whopping 20 per cent.
Fitch Ratings blames record-low interest rates for contributing to soaring levels of household debt-to-income levels: The average Canadian owes $1.63 for every dollar earned.
It warned that the federal government may have to step in and take measures to slow growth – like raising interest rates – if the market doesn’t start cooling on its own.
Despite the dire prediction, the agency said it’s not expecting a price drop anytime soon.