Home prices jump with more gains forecast

Sales up as last buyers sign on to beat deadline for 35-year terms

Lower Mainland real estate prices have gained ground in the last couple of months

Buying a typical detached house in Metro Vancouver costs about $50,000 more than it did in November.

And at least one forecast calls for the gains to continue – at a more gradual pace – this year.

The 6.3-per-cent house price jump to $848,645 in February from $796,900 three months earlier was driven by big price increases in Richmond and the west side of Vancouver, according to the Real Estate Board of Greater Vancouver (REBGV).

Richmond’s benchmark house price rose $190,000 in that period to nearly $1.1 million, while the Vancouver west side gained $222,000 to $1.85 million.

REBGV president Jake Moldowan said the intensity of buying activity in those areas indicates houses there are the most sought-after properties in the region.

Benchmark attached homes in the Greater Vancouver region have gained about 3.3 per cent so far this year to $507,000 while condos are up 3.2 per cent to $399,400.

The Greater Vancouver association covers Metro Vancouver except Surrey, North Delta, White Rock and Langley.

Port Coquitlam was the only city in the region to experience any drop so far this year, with detached houses down about 1.4 per cent.

Further east in the Fraser Valley, benchmark detached houses went for an average of $514,000 in February, a gain of about 3.2 per cent so far this year.

Valley townhouses were down slightly to $316,600 and apartments are up 2.3 per cent to $245,500.

One factor driving sales right now is the pending change in lending rules that will ban 35-year mortgages on March 18, making it more difficult for some buyers without big enough down payments to qualify for more conventional terms.

“Some clients have asked that their sale complete before that date,” said Fraser Valley Real Estate Board president Sukh Sidhu. “A 35-year amortization could be more attractive to those buyers.”

Central 1 Credit Union economist Bryan Yu said a sales surge early this year was expected as some younger first-time buyers move to beat the deadline.

But he predicts the dampening effects of the tightened mortgage rules and expected uptick in rates should be offset by Metro Vancouver’s continued population growth and improved economic conditions.

Yu projects median home prices in the Lower Mainland will rise four per cent this year, stay flat in 2012 and gain six per cent in 2013.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Hope-raised NHL official among BC Hockey Hall of Fame inductees

Jay Sharrers officiated 1,419 regular NHL games, plus Stanley Cup finals and Olympics

How would crowded Fraser Valley hospitals deal with patient surge? Officials won’t say

Amid coronavirus case and crowding issues, health officials won’t say where more patients would go

Sasquatch Mountain Aussie Day celebration raises $800

Proceeds of bikini runs, toonie tosses and more go to wildfire victims

Artists at Work featured at Hope Arts Gallery in February

Melange 2020 will showcase myriad talents by local artists until Feb. 28

DNA confirms SUV struck and killed Abbotsford cyclist in 2015, court hears

Kerry Froese operated company that owned vehicle that struck and killed Ronald James Scott in 2015

VIDEO: Feds look to help 126 Canadians quarantined in China for coronavirus

China has confirmed more than 4,500 cases of the new virus, with more than 100 deaths

Party bus door fault for years ahead of Langley woman’s death: Coroner

Tuesday report classifed Chelsea James’ death accidental, but was critical of bus inspection process

Sap thief taps Saanich park maple trees, faces hefty fine

One tree found with four taps in Mount Doug Park

B.C. reports first coronavirus in Vancouver region

First patient visited Wuhan, China, reported symptoms

Uber threatens legal action to ‘defend its right’ to operate in Surrey

‘I have no concerns,’ Mayor Doug McCallum replies

Victoria resident says WestJet employee uttered racist comment, refused to let her on plane

Customer claims she was told ‘You guys can’t handle your alcohol’ by WestJet employee

Bystander who tried to help dog being attacked not liable for its death: B.C. tribunal

Owner of dog killed tried to get $5,000 in damages from man who tried to save it

INFOGRAPHIC: See how fast your B.C. city grew in 2019

The province’s fastest-growing municipalities were located on Vancouver Island

Landowner hearings begin for Trans Mountain expansion in Alberta

Detailed route talks start in Spruce Grove, in B.C. communities soon

Most Read