Greater Vancouver real estate prices are rising at an even faster past these days. Real Estate Board of Greater Vancouver (REBGV) data shows home prices hit a new record high in April. Home prices were already fast growing, but the annual rate went parabolic in February. This is shortly after a series of statements from Canada welcoming the growth.
Typical Greater Vancouver Home Rises $116,000
The Greater Vancouver composite benchmark, a.k.a. the price of a typical home, reached a new record high. The benchmark hit $1,152,600 in April, up 2.6% ($29,300) from the month before. This represents an increase of 12.0% ($116,600) compared to the same month a year ago. Most gains are driven by detached homes, but condo apartments have picked up recently.
Greater Vancouver Composite Benchmark Price
The price of a typical home across Greater Vancouver, in Canadian dollars.Source: REBGV; Better Dwelling.
The 12-month rate of growth has seen a very fast acceleration, starting a few months ago. The 12.0% annual rate of growth for April is the highest since the same month in 2018. Price gains were large throughout the pandemic, but they went parabolic in February. This is when the Bank of Canada (BoC) said they “needed” the price growth, and downplayed any signs of froth. That sentiment was reinforced by the Federal government saying price declines are unacceptable.
To appreciate how fast the recent acceleration has been, you have to look at where prices were. Composite prices are only up 5.4% from 3 years ago. That’s less than half of the annual growth seen in the past year. Recent gains are making up for any ground lost.
Vancouver Detached Prices Are $293,000 Higher Than Last Year
Greater Vanocuver detached housing has been behind most of the composite gains in the past year. Detached homes now have a benchmark price of $1,755,500 in April, up 3.2% ($55,300) from a month before. This represents an increase of 20.9% ($293,400) from the same month last year. Despite these gains, the price growth is more of a recent phenomenon as well.
Greater Vancouver Composite Benchmark Price Change
The annual percent change of a typical home across Greater Vancouver.Source: REBGV; Better Dwelling.
Greater Vancouver detached home prices increased at the fastest rate in nearly half a decade. The 20.9% annual gain seen in April is the highest seen since November 2016 — a few months shy of 5 years. Like in the general composite, the 12-month acceleration is also fairly new. Detached prices are only up 10.3% from 3 years ago, and 23.5% from 5 years ago. The single year of accelerated growth made up a lot of lost ground.
Vancouver Condo Prices Rise Over $13,000 In Just One Month
Greater Vancouver condo apartments finally joined the market, making a massive single month gain. The condo benchmark price reached $729,600 in April, up 1.9% ($13,800) from the previous month. This works out to an increase of 5.9% ($40,800) from the same month a year before. Increases may sound small, but that’s only because they’re being placed beside detached homes. The gains are massive.
Condo apartment growth has been tame over the past few years, but the market had a sudden turn. The 5.9% annual growth is the highest 12-month rate of growth for condos since September 2018. Prior to February, growth had been decelerating. After the BoC’s remarks, the market suddenly reversed, as people grabbed on to whatever they could. The benchmark is still only 1.6% higher than it was 3 years ago, but they’re making up for lost ground quickly.
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