Vancouver Benchmark House Prices Up 30% in a Year

Posted by Staff Reporter (media@realtytoday.com) on May 04, 2016 08:40 AM EDT
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WASHINGTON, DC - JUNE 23: A 'Reduced' sign sits in the front yard of a house for sale June 23, 2015 in Northeast Washington, DC. Purchases of new homes in the U.S. rose in May to the highest level in seven years, signaling that the industry may be gaining momentum heading toward the second half of the year. (Photo : Drew Angerer/Getty Images)

House prices in Canada just keeps getting higher and higher, and as previously reported here on Realty Today, some even opted to purchase a house with friends to get their foot on the market.

Recent data from the Real Estate Board of Greater Vancouver revealed that the benchmark price for a detached home in the Vancouver region rose by 30.1 percent in the past year, now amounting to $1.4 million. As reported by CBC News, the west side of the region still has the biggest benchmark prices at $3.2 million, a 28.4 percent increase in the past year. Meanwhile, the report added that the highest increases in benchmark prices were recorded outside of Vancouver. Tsawwassen saw a 41 percent climb to $1.16 million while Richmond was up by 36.5 percent to $1.5 million and Ladner rose by 35 percent to $971,500.

The publication noted that the increases in benchmark prices, which the Real Estate Board of Greater Vancouver uses to describe the market's typical property, are attributed to the growing demand while the supply could not keep up. According to The Globe and Mail, the Greater Vancouver area has set another record month of sales volumes with a 14.4 percent increase in the number of transactions last month compared to a year earlier. For the third consecutive month of increase, the city had 4,781 house sales transactions in April.

The Globe and Mail cited Josh Gordon, an assistant professor at Simon Fraser University's School of Public Policy, saying that the increases in house prices and sales in Canada is driven by the strong demand from foreign investors, particularly buyers from China. While China was trying to control the outflow of capital from the country, there were still many Chinese seeking a safe haven for their wealth through the real estate market overseas.

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