Condo prices in Metro Vancouver shot up by 20 per cent in 2017, according to Royal LePage.
In data released Wednesday, the real estate firm suggests new mortgage rules that went into effect on Jan. 1 boosted condo values in the last quarter of the year.
The new rules require all borrowers to qualify for a mortgage based on either the five-year benchmark rate or their lender’s actual rate plus two per cent, whichever is higher.
The change applies to all mortgages, new or renewed, even if the down payment exceeds 20 per cent.
Randy Ryalls, general manager of Royal LePage Sterling Realty in Port Moody, said while the new rules might mean Greater Vancouver’s increasingly expensive market cools slightly, the entry-level condo market will only heat up.
“These regulations will likely place many purchasers into the entry-level market, causing the segment to overheat further,” said Ryalls.
North Vancouver saw the biggest surge in condo prices year over year with a 27-per-cent jump, followed by Surrey with at 24 per cent and Langley at 23.
Despite a slower 14-per-cent increase, condos in West Vancouver ended the year as the region’s most expensive at $1,167,544.
Houses didn’t show the same surge in prices, with one-storey homes rising only five per cent and two-storey home going up by seven per cent across Greater Vancouver.
One- and two-storey house prices actually dropped in West Vancouver over 2017, at six per cent and 10 per cent, respectively.