(File photo)

Greater Vancouver condo prices jumped 20 per cent in 2017

New mortgage rules increased competition for entry-level properties

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.

READ: Lower Mainland condos, townhouses see 25 per cent price hike in 2017

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.

READ: Condos, townhouses drive up Fraser Valley property values

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.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

VIDEO: One wounded in Maple Ridge gun battle

Two vehicles reportedly traded shots while driving down street

QUIZ: How much do you know about British Columbia?

On this B.C. Day long weekend, put your knowledge of our province to the test

LETTER: Maple Ridge roads are despicable

Letter writer and taxpayer ashamed of quality of road maintenance, especially along Dewdney

Pitt Meadows woman adding diversity to Little Free Libraries across B.C.

Amy Thiessen started a GoFundMe page to purchase books by black and indigenous authors

VIDEO: Otter pups learn to swim at B.C. wildlife rescue facility

Watch Critter Care’s Nathan Wagstaffe help seven young otters go for their first dip

Michael Buble among 13 British Columbians to receive Order of B.C.

Ceremony will be delayed to 2021 due to COVID-19

U.S. border communities feel loss of Canadian tourists, shoppers and friends

Restrictions on non-essential travel across the Canada-U.S. border have been in place since March 2`

Rollout of COVID-19 Alert app faces criticism over accessibility

App requires users to have Apple or Android phones made in the last five years, and a relatively new operating system

Fraser Valley Bandits clinch playoff spot with win

Bandits down Niagara River Lions 70-57 on Sunday, improve to 3-2

Alleged impaired driver sparks small wildfire near Lytton after crash: B.C. RCMP

Good Samaritans prevented the blaze from getting out of control

B.C. First Nation adopts ‘digital twinning’ software to better manage territory

Software allows users to visualize what a mountain might look like if the trees on its slopes were logged

All inquiry recommendations implemented after fatal Port Hardy RCMP shooting: Ministry

The Independent Investigations Office of B.C. cleared the RCMP officers involved of wrongdoing

Most Read