Kitsilano Condo

Vancouver home prices increase most in Canada in first quarter of 2010

Home prices in Metro Vancouver experienced the biggest increase in any major Canadian city during the first quarter of 2010.  The decline during the global recession and the recovery afterwards has been steeper and faster than analysts had predicted. Typical hot spots in Vancouver’s real estate market like Kitsilano, Fairview, and Vancouver’s east side detached market have rebounded the fastest.

During the first quarter of this year the average price of a Vancouver east side condominium gained 29 percent, and the average detached bungalow 25 percent when compared to the first quarter of 2009.

An average Vancouver west side bungalow, which went as low as $950,000 in the first quarter of 2009, has risen back to an average of $1.15 million, a 21 percent gain, in the first quarter of this year.                          

With such sharp increases in prices broader economic growth becomes important.  Though price increases remain forecasted for the second quarter, higher mortgage interest rates and tighter qualifying rules should cool things down to more sustainable levels later this year.                 

Price increases in all markets across Canada are expected to ease in mid to late 2010.