Early signs that Vancouver housing market correction may be over: Royal LePage

Royal LePage: Vancouver market risks 'whiplash'

TORONTO — Royal LePage says early evidence suggests that the recent correction in Vancouver’s housing market may be short-lived.

The realtor released a report Tuesday saying Canada’s two largest real estate markets continued their divergence in the first quarter of the year.

The aggregate price of a home in the Greater Toronto Area rose by an “unprecedented” 20 per cent across all housing types to $759,241 in the first three months of 2017.

In the Greater Vancouver area, the price of a home rose 12.3 per cent year-over-year to $1,179,482.

Royal LePage CEO Phil Soper says the housing correction in Vancouver began seven months ago, around the time that the B.C. government introduced a 15 per cent tax on foreign nationals buying real estate in the city.

Sales volumes then plunged and prices slowed their torrid upwards trajectory.

But just in the past month, sales in the Vancouver area have leapt forward by close to 50 per cent on a month-over-month basis, says Soper — better than the seasonal average.

“An unfortunate side effect of heavy-handed regulatory intervention is that we risk market whiplash,” Soper said in a statement.

“In the coming weeks, it is possible that six months of pent-up demand will be unleashed on the market, sending prices sharply upward again; this when the pre-intervention 2016 trend was a natural market slowdown based on eroding affordability.”

Across Canada, the aggregate price of a home grew 12.6 per cent year-over-year to $574,575 during the first quarter, Royal LePage said.

The price of a two-storey home climbed 13.9 per cent year-over-year to $681,728, while the price of a bungalow rose 10.9 per cent to $490,018. Condo prices increased by 8.9 per cent to $373,768.

In Calgary, home prices were up 0.6 per cent to $461,635, while in Edmonton they rose 0.3 per cent to $381,733.

— Follow @alexposadzki on Twitter.

Alexandra Posadzki, The Canadian Press

Just Posted

High streamflow advisory issued for Chilliwack River

River levels rising fast at Vedder gauge

Mudslides close Highway 1 between Hope and Chilliwack

Geotechnicians are on scene and an assessment is underway.

Education minister blasts Chilliwack school trustee on gender issues

Fleming calls Neufeld’s behaviour ‘shameful’ and ‘unacceptable’

Chilliwack firefighters issue warning over heat lamp use after barn fire

Being used to keep piglets warm; extinguished by homeowners

VIDEO: Fraser Valley Bald Eagle Festival

This year’s event featured six stops, including viewing points and activity centres.

Charge laid against B.C. man in alleged cat torture

Joshua Michael Lemire, 20, has been charged with one count of causing unnecessary pain/suffering to an animal.

Oxford Dictionary responds by video to Victoria boy’s bid for levidrome

William Shatner tweet garners attention of Oxford

Site C allows more wind, solar energy, experts say

Lawyer, economist argue for completion of B.C. Hydro dam

Record-high temperatures reached in 18 spots in B.C.

White Rock, Victoria and the Fraser Valley made new records for the unusually warm November day

Supreme Court to hear case on whether ISPs can charge for IDing online pirates

Film producers seeking to crack down on people who share copyrighted material illegally

Snow warning for the Coquihalla

Driving through highway passes will require some extra caution today.

5 to start your day

Coquitlam dog walker rescued, education minister blasts Chilliwack trustee and more

Canadian initiative fuelled by Terry Fox’s dream may be only hope for young cancer patients

Young cancer patients in rural or remote areas did not always get the testing available

Most Read