Money Increase in new home prices reaches 7-year high in Metro Vancouver

01:23  13 august  2017
01:23  13 august  2017 Source:   cbc.ca

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New numbers from Statistics Canada show 6.2 per cent increase in new house and townhouse prices from 2016. Despite efforts by government and regulators to curb Metro Vancouver 's hot housing market, new home prices have continued to climb in the past year .

Increase in new home prices reaches 7 - year high in Metro Vancouver . Metro Vancouver running out of industrial land, says new report. Scarce condo supply in Metro Vancouver squeezes would-be buyers from market.

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Despite efforts by government and regulators to curb Metro Vancouver's hot housing market, new home prices have continued to climb in the past year.

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Increase in new home prices reaches 7 - year high in Metro Vancouver . New numbers from Statistics Canada show 6.2 per cent increase in new house and townhouse prices from 2016. cbc.ca.

Increase in new home prices reaches 7 - year high in Metro Vancouver . Condo prices in Vancouver jumped 21.7 per cent to 5,800 in September compared with year-earlier levels.

Recently released data from Statistics Canada shows the overall price of brand new houses and townhomes in the region has soared 6.2 per cent in the 12 months since June 2016.

"Last time [the new house price index] grew larger than 6.2 per cent was in June of 2010," said analyst Rohit Verma, adding prices rose 6.7 per cent.

The agency has numbers dating back to 1981.

Verma says the information is gathered through a monthly survey of home builders and their contractors, excluding new condominiums.

Across the country in the month of June, Metro Vancouver saw the greatest gain at 1.5 per cent overall. Ottawa-Gatineau, Ont. followed at 0.9 per cent.

Verma says the main reason cited for the increase was "improving market conditions." 

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Royal LePage said the increase in home prices is also brought on homeowners hesitant to list their homes for fear of not being able to find an ,000 fines part of Vancouver 's new agreement with Airbnb. Last month was 'quietest March' for Metro Vancouver home listings in almost 10 years .

· According to the Consumer Price Index (2006 – 2016), Metro Vancouver ’s prices have increased by 15.3% or 1.5% per year on average for the last 10 year period. Recent construction of new purpose‐built rental has added more high priced units, therefore raising median rent in the region.

Cooling a hot market

It's more evidence of the resiliency of the region's real estate market, despite government efforts at all levels to temper prices.

Last August, the previous Liberal government introduced a 15 per cent tax on foreign home buyers in Metro Vancouver.

Two months later, mortgage rules were tightened across Canada.

Home buyers applying for mortgages with less than a 20 per cent downpayment had to undergo a "stress test" to determine if they could afford to pay back a loan if interest rates rose.

And rates did rise.

Last month, the Bank of Canada raised its key interest rate by 0.25 percentage points — the first time it had increased it since 2010.

All of that hasn't stopped the market from climbing or put affordable homes within the reach of most people.

Sales in July were 0.7 per cent above the 10-year sales average for the month, according to the BC. Real Estate Association.

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“ High prices , new tax announcements, rising interest rates, and stricter mortgage requirements are among the factors affecting home buyer and seller According to the REBGV, there were 4,450 detached, attached and apartment properties newly listed for sale in Metro Vancouver last month.

Increase in new home prices reaches 7 - year high in Metro Vancouver . Vancouver home prices may have finally shaken off foreign buyers’ tax: index.

The Multiple Listing Service Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,019,400 — an 8.7 per cent increase compared to July 2016

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Source: http://ca.pressfrom.com/news/money/-40089-increase-in-new-home-prices-reaches-7-year-high-in-metro-vancouver/

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