The City of Vancouver’s housing market had a year-over-year increase in 2010. Two-storey homes increased in price an average of 9.8%; bungalows 7.6%; and condos 7.0%.
Contrary to reports from the fall where there was expectation of a flat market in the first half of 2011, the market is expected to be strong through until summer. Projections are for an average 3.7% increase in prices.
More info available below, courtesy of canada.com:
Housing Market Still Rosy
The average price of a home in Vancouver should climb 3.7 per cent this year, just above the increase expected for the country as a whole, Royal LePage Real Estate Services says.
Interest rates and employment levels will have the greatest influence on house prices in Vancouver this year, the real estate services firm said in a survey released Thursday.
For standard two-storey homes, Vancouver saw year-over-year average price gains of 9.8 per cent in the fourth quarter of last year. That brought the average price of two-storey homes to $1,007,500.
"Detached bungalows followed with year-over-year gains of 7.6 per cent, selling for a fourth quarter average of $891,500," Royal LePage said. "Standard condominiums were close behind, selling for an average price of $484,500, a gain of seven per cent."
Tight supply and high prices in the city’s west side are driving up prices on the east side, especially for single-family homes, Royal LePage said.
Nationally, home prices will continue a "moderate and steady climb" this year, helped along by an improving economy and low interest rates, the firm’s report said.
The average price of a home in Canada will rise three per cent to $348,600, even as the number of transactions falls two per cent.
It said that after a "lacklustre" third quarter in 2010, home prices were up between 3.9 and 4.6 per cent, year over year, in the year’s fourth quarter. This marked a return to growth more typical of trends since the end of the recession, Royal LePage said.
The report said, similar to last year, sales will be more robust in the first half of the year as home-buyers take advantage of low interest rates that could be on the rise in the near future.
"Canadians realize that interest rates are unsustainably low and that homes will become effectively more expensive when mortgage rates return to normal levels," Royal LePage CEO Phil Soper said. "We will likely see more price appreciation early in 2011 as some buyers complete transactions in advance of anticipated higher borrowing costs."
The report said the strongest price gains will happen in mid-sized cities where homes are priced below the national average. It noted places like Winnipeg, St. John’s and Fredericton, where single two-storey homes are still widely available for less than $300,000.
Alberta’s housing market is also expected to be strong in the coming year, as the energy sector helps fuel a strong hiring climate.
However, cities such as Calgary and Edmonton were among the few major centres showing price declines, year to year, as of the end of last year. Edmonton now has lower-priced homes than Saskatoon, according to the Royal LePage report. The average price for a two-storey home in Edmonton was $334,286 in last year’s fourth quarter, down 2.3 per cent from a year earlier. It was $359,250 in Saskatoon, up 6.1 per cent.