The median price of a Vancouver condo shot up nearly 20 per cent in the past year, to $775,806, according to a new price survey.
The Royal LePage House Price Survey, released today, says the new mortgage stress test — which went into effect on January 1 — sent prices in the condo market skyward.
“It is true that the new lending policies may slow errant home purchasing behaviors,” said Randy Ryalls, general manager of Royal LePage Sterling Realty in Port Moody. “However, by diluting prospective homeowner’s purchasing power, these regulations will likely place many purchasers into the entry-level market, causing the segment to overheat further.”
Prices of condos in Vancouver increased 18.7 per cent year-over-year, from $653,794 in Q4 2016 to $775,806 in Q4 2017. Surrey condos also saw a huge increase in value, up 23.9 per cent from $273,241 to $338,570.
Agent Steve Saretsky says buyers spent nearly double on Surrey condos in 2017 over the previous year. Prices in the area have shot up, with new one-bedroom units near SkyTrain selling at presale for close to $500,000.
Langley also saw a significant jump in the median price of a condominium, up 23.4 per cent year-over-year to $359,885. Richmond was up 19.5% to $533,063, and Burnaby up 25.1% to $605,284.
Royal LePage predicts that the aggregate home price in Greater Vancouver will appreciate a further 5.2 per cent by the end of 2018, “as exceptionally low inventory levels continue to entice price appreciation within the region.”