Royal LePage revises Canadian home price forecast upwards to 2.3% by year-end 2020, as low rates and pent-up demand face limited housing supply.
What does this mean for Greater Vancouver?
In the second quarter, the aggregate price of a home in Greater Vancouver increased by 1.9% year-over-year to $1,109,069. Based on housing type, the median price of a standard two-storey home in Greater Vancouver increased by 3.7% year-over-year to $1,455,027 in the second quarter. During the same period, the median price of a condominium in the region remained relatively flat, decreasing 0.4% year-over-year to $638,242, while the median price of a bungalow decreased 1.1% to $1,189,692.
"The Greater Vancouver real estate market is continuing its recovery that began in 2019. While the pandemic caused a significant disruption in early spring sales, continued low inventory has maintained prices," said Randy Ryalls, general manager, Royal LePage Sterling Realty.
Real estate in the city of Vancouver posted healthy year-over-year gains in the second quarter. The median price of a two-story home rose 7.6% to $2,088,932 compared to the same period in the previous year. During the second quarter, the median price of a bungalow rose 2.6% year-over-year to $1,434,738, while the median price of a condominium decreased by 2.0% to $738,128.
"Stronger price appreciation for two-storey homes compared to condominiums reflects buyers’ preference for larger properties and less shared areas, a trend that has evolved as a result of the pandemic," said Ryalls. "This has opened up excellent opportunities for those seeking city-centre condos."
Royal LePage is forecasting that the aggregate price of a home in Greater Vancouver will increase modestly by 0.5% to $1,087,000 in the fourth quarter of 2020 compared to the same quarter last year.