Vancouver homebuyers weren’t cut any breaks over the spring.
The price tag for a single-family detached home in the city surged 4.6 per cent annually to a considerable $2,293,600 in the second quarter of this year, according to a July 11 report from Royal LePage.
Condominiums also saw notable annual growth of 3.7 per cent, rising to $852,100.
However, Vancouver’s median home price wasn’t as active, seeing just a slight 0.3-per-cent increase to $1,438,700 over the same period.
The report also showed single-family detached homes in Metro Vancouver rising by 2.6 per cent to $1,783,000, with condominiums seeing a modest growth of only one per cent to $777,100.
Unlike the City of Vancouver, the region’s median home price tag grew annually by 3.9 per cent, bringing the price to $1,251,200 in the second quarter.
But the Bank of Canada’s long-awaited rate cut last month did not lead buyers back to the market, according to Randy Ryalls, B.C.-based general manager at Royal LePage Sterling Realty.
This is keeping prices flat and keeping activity in Vancouver below the 10-year average.
“We continue to see consumers sitting on the fence, taking their time with their real estate purchase decisions,” Ryalls said in the report. “Inventory has continued to grow, giving prospective buyers some much-needed choice and keeping market conditions balanced.”
The provincial government has also applied pressure on new-home supply, particularly near transit centres, to address affordability.
However, elevated borrowing costs, labour shortages and high material prices are preventing developers from launching new projects.
Ryalls also pointed to a drop in activity as a consequence of the summer months, as buyers and sellers pump the brakes.
“If inventory levels continue to rise at the rate we’ve been seeing, those who are under tight pressure to sell may need to consider lowering their list price in order to attract buyer attention,” said Ryalls.
Royal LePage forecasts the aggregate price of a home in Metro Vancouver will increase 5.5 per cent annually by the fourth quarter of 2024.
