According to the Royal LePage House Price Survey released today, the aggregate1 price of a home in Greater Vancouver increased 19.6 per cent year-over-year to $1,202,500 in the second quarter of 2021. Broken out by housing type, the median price of a single-family detached home increased 24.9 per cent to $1,625,000, while the median price of a condominium increased 9.4 per cent to $700,000 during the same period.
“While inventory is up slightly and demand seems to be decreasing heading into the summer months, Vancouver is still experiencing a seller’s market,” said Randy Ryalls, general manager, Royal LePage Sterling Realty. “Although not at the levels seen in April, competition remains high and continues to put upward pressure on prices. This is especially true in the single-family segment, where demand from local move-up buyers is strong.”
In the city of Vancouver, the aggregate price of a home increased 11.5 per cent year-over-year to $1,305,000 in the second quarter of 2021. During the same period, the median price of a single family detached home increased 14.6 per cent to $2,350,000, while the median price of a condominium increased 4.4 per cent to $774,000. Ryalls added that the market may see some relief in the summer, as widespread buyer fatigue sets in and health restrictions are lifted.
“I expect many Canadians will take advantage of the country’s reopening in the coming months, creating a bit of breathing room in the housing market. That’s normal for this time of year, but the fall will likely be another busy and competitive time to buy a property,” noted Ryalls.
Royal LePage is forecasting that the aggregate price of a home in Greater Vancouver will increase 15.0 per cent in the fourth quarter of 2021, compared to the same quarter last year. The previous forecast, released in April, 2021, has been revised upward to reflect the current state of the market.
Nationally, the aggregate price of a home in Canada increased 25.3 per cent year-over-year to $727,000 in the second quarter of 2021, as inventory shortages continue across the country. Eighty-nine per cent of the regions surveyed saw year-over-year double-digit aggregate price gains, driven largely by increases in the single-family detached property segment. However, the level of competition seen in recent months is beginning to slow.
“After a year of record growth in the Canadian housing market, we appear to have passed the peak of price appreciation,” said Phil Soper, president and CEO of Royal LePage. “While current home price gains are expected to be sustained due to chronically low inventory and new demand from growing household formation, investors and newcomers, the torrid pace of home price appreciation has begun to moderate.”
The Royal LePage National House Price Composite is compiled from proprietary property data, nationally and in 62 of the nation’s largest real estate markets. When broken out by housing type, the median price of a single-family detached home rose 27.1 per cent year-over-year to $765,000, while the median price of a condominium increased 11.7 per cent year-over-year to $525,000. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.
During the second quarter, the company revised its House Price Survey methodology, including geographical boundaries and housing types. Royal LePage’s aggregate prices are calculated using a weighted average of the median values of all housing types collected. This improves accuracy as surges of transactions in the upper end or lower end of the real estate market are less likely to skew results.