Average price of Metro Vancouver home now almost $663,000, above pre-recession levels
Metro Vancouver's cheap-mortgage-fuelled real estate market has overshot its previous peak for prices with indications it will keep going, albeit more slowly, before cooling with the rise in interest rates.
That is well above the previous $624,639 peak price, which the region saw in May 2008.
Now, the Teranet-National Bank housing price index, a more complicated measure of property prices that analyses data from the repeat sales of homes, also indicates that all the deflation of home prices that occurred during the recession had been regained by January, and will keep going, but more slowly.
"Even in Vancouver, we've gained back everything we lost," Simon Cote, an analyst at the National Bank of Canada said in an interview. "The pace might be slowing a bit, but they are still going up."
For a family with a household income of $70,000, Muir said, this week's bump in five-year rates for buyers seeking five-year terms reduces the final amount they can pay for a home by $35,000.