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

‘Listen to your gut’ urges injured skier

Mike Shaw was told he’d never walk again after an accident four years ago, but he defied the odds

Families of missing Shuswap women call for action

Birthday of missing woman Ashley Simpson remembered during rally in Yankee Flats

Nasty note on windshield sparks online outrage

Vernon’s Bailey McDonald is using a painful experience to start conversation about invisible illness

CPR a vital link in saving man’s life

Vernon man’s life saved by strangers performing CPR following heart attack on golf course

High-risk offender faces weapons charges

Suspect arrested in Salmon Arm, accused of threatening to kill father, burn down family home.

VIDEO: Rare comic showing Superman’s 1st appearance to be auctioned

The 1938 comic features Superman hoisting a car over his head

VIDEO: Rare comic showing Superman’s 1st appearance to be auctioned

The 1938 comic features Superman hoisting a car over his head

Pine beetles from Jasper National Park moving into commercial forest

In 2014, beetle activity went from a few spots around Jasper’s townsite to rampant

VIDEO: Tragically Hip members, Alex Trebek receive Order of Canada

Newest recipients join 6,897 Canadians such as Christine Sinclair, Graham Greene and Mark Messier

AC/DC’s Malcolm Young dies at 64

‘Malcolm was a songwriter, guitarist, performer, producer and visionary who inspired many.’

‘I will now live in consistent fear’: Allan Schoenborn granted escorted leaves

The Merritt man was deemed not criminally responsible in the killing of his three children in 2008

Guns and drugs seized in Kamloops RCMP blitz

Kamloops Mounties and the gang unit seize drugs and make arrests in two-day blitz

Hammy the deer dodges conservation officers in Prince Rupert

The famous Prince Rupert hammock deer maintains his purple threads

‘No shirt, no service, no Canada’

Shirtless Tacoma man arrested after Canadian border officials say they found meth in rental vehicle

Most Read