In defiance of emerging signs of fundamental problems, the benchmark price for a detached home in Vancouver reached a record high over the past 12 months, topping off at $1.4 million and growing by 30.1 per cent on a year-over-year basis.
According to the Real Estate Board of Greater Vancouver, the April 2016 figures represent some of the greatest increases historically, despite the CIBC’s repeated warnings of rampant overvaluation in the city.
The realtors’ association added that much of the year’s growth could be attributed to heightened demand in the suburbs: Tsawwassen prices shot up by an unprecedented 41 per cent to $1.16 million, while Richmond went up by 36.5 per cent (to $1.5 million) and Ladner by 35 per cent (to $971,500).
The city’s west side still plays host to the most valuable real estate in Vancouver, with the benchmark price for a detached property going up by 28.4 per cent (to $3.2 million) in the past year.
Exacerbating the affordability situation is the influx of new buyers in a market that has for a long time seen supply struggling to keep up, observers said.
“While we're seeing more homes listed for sale in recent months, supply is still chasing this unprecedented surge of demand in our marketplace,” Greater Vancouver Real Estate Board president Dan Morrison stated in a news release, as quoted by CBC News