Vancouver house prices jump 30.9 per cent in 1 year
Darcy Matheson, CTV Vancouver
Published Tuesday, February 16, 2016 9:27AM PST
Last Updated Tuesday, February 16, 2016 3:32PM PST
More proof of the unaffordability in the Vancouver housing market struck Tuesday, as new numbers from the Canadian Real Estate Association revealed the price of a home in the city had jumped more than 30 per cent in one year.
According to its National Average Price Map, the average price of a home in Vancouver soared from $827,558 in January 2015 to $1,083,177 in January 2016 – an astounding 30.9 per cent climb.
For overall sales in B.C., the year over year change for price increased by 26.9 per cent, from $593,155 to $752,906.
The numbers are much higher than the national average, which saw a 17 per cent overall jump in the past year.
The agency says that the largest gains across the country were fueled by the markets in Greater Vancouver and Toronto, although the national average home price now sits at $470,297 – much lower than what you could likely find in those two areas.
Outside of B.C. and Ontario, prices actually saw moderate declines: The average price edged lower by 0.3 per cent, to $286,911.
“January 2016 picked up where 2015 left off, with single family homes in the GTA and Greater Vancouver in short supply amid strong demand standing in contrast to sidelined home buyers and ample supply in a number of Alberta housing markets,” said Gregory Klump, CREA’s Chief Economist.
Locally, the biggest year-over-year price gains came from two-storey single family homes (9.97 per cent), one-storey single family homes (6.86 per cent), townhouses (6.46 per cent), and apartments (5.16 per cent).
CREA says tighter mortgage regulations that took effect Monday could shrink the pool of prospective home buyers who qualify for mortgage financing, and cause national sales activity to ease in the months ahead.
But critics argue that the restrictions, which require a higher down payment on the portion of a mortgage between $500,000 and $1-million, will do little in the Vancouver area -- where even modest homes cost much more.
The median household income in #Vancouver is ~$73,390—yet the average price of a home is now $1,083,177. Nearly 15 times the average income.— Sarah MacDonald (@CTVSarah) February 16, 2016