Royal LePage Q4 2018 House Price Survey
Royal LePage just released their 2018 Q4 House Price Survey results and the news is mixed. Phil Soper, President and CEO of Royal LePage, described the inflation as leading to “…dangerous overheating in our most populous regions” but noted that we are in a correctional cycle. Alex Macpherson of The Province described the current buyers market as expecting to rebound in 2019.
Locally, the aggregate home price in Greater Vancouver increased 2.1 per cent in the fourth quarter to $1,274,831, compared to the same period last year. When broken out by housing type, the median price of a condominium increased 4.6 per cent year-over-year to $680,991. Meanwhile, the median price of a two-storey home grew at a moderate pace, rising 2.9 per cent year-overyear to $1,599,785. However, the median price of a bungalow decreased 1.4 year-over-year to $1,402,002. (source: Royal LePage)
“While we’ve seen a significant reduction in the number of sales across all housing types, Condominiums continue to outperform all other housing types in Greater Vancouver,” said Randy Ryalls, general manager, Royal LePage Sterling Realty in Port Moody. “While the condo market is showing balance, in contrast, sales activity within the detached housing market has slowed down considerably and is firmly in a buyer’s market. The mortgage qualifying regulations have severely attenuated the purchasing power of interested buyers including the all important “move up” buyer eager to purchase a townhome or detached home.”
Other key highlights from the national release include:
- The price of a home in Canada increased 4.0 per cent year-over-year to $631,223 in the fourth quarter of 2018, continuing the recovery from the most significant housing correctionsince the financial crisis. Condominiums continued to see the highest rate of appreciation nationally when compared to the detached segment, rising 7.2 per cent year-over-year to $447,915.
- The Canadian economy is performing well overall, with pockets of uncertainty. Persistently weak oil prices driven by domestic market access bottlenecks and global supply gluts have hit Western Canada hard, and trade tensions between China and the U.S. in particular are impacting consumer confidence across the continent.
- Home price appreciation in Greater Vancouver grew at a modest pace rising 2.1 per cent in the fourth quarter from the year before, to an aggregate price of $1,274,831. More affordable suburbs like Langley, Surrey, and Coquitlam that had seen double digit price growth in previous quarters grew at a more modest pace rising 2.4 per cent, 2.3 per cent, and 0.4 per cent respectively.
- The GTA was a story of contrasts. The City of Toronto experienced a strong rebound in the fourth quarter, while the surrounding areas remained relatively weak year-over-year. Prices in Toronto saw sizable increases, rising 8.8 per cent compared to 3.4 per cent gains for the GTA more broadly.
- The aggregate price of a home in the Greater Montreal Area passed the $400,000 mark, rising to $407,230, an increase of 4.1 per cent from the same period last year. This represents a higher rate of appreciation than that seen in both the GTA and Greater Vancouver, and above the national aggregate percentage increase.
If you would like to discuss what these Q4 results mean to you buying or selling a home in Coquitlam, Port Moody, or Port Coquitlam, please feel free to call your Coquitlam Realtor Jessica Chen-Sargent.