(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.

Just Posted

PHOTOS: Surrey crews battle house fire in Cloverdale

Drivers urged to avoid area after fire in 17200-block of 58th Avenue

Third site of homeless housing project may be across from Surrey rec centre

This would be the third and final location for 160-unit modular housing project in Whalley

Residents react to Ocean Park laboratory relocation

Medical lab to be moved to Peace Arch Hospital

‘Restless night’ for Semiahmoo First Nation after tsunami warning

Alaska earthquake puts Semiahmoo First Nation on notice

UPDATE: Police probe fuel truck and train collision in Port Coquitlam

CP Rail reporting no injuries, driver of truck is safe.

EXCLUSIVE: A first look inside Surrey’s new Civic Hotel, with video

B.C.-themed floors in the 144-room, Marriott-branded hotel, due open in March

Andrew Scheer on trade, Trump and Trudeau

Canada’s Conservative leader begins three-day visit to B.C.

Victims restrained, sex toys and cash stolen from B.C. adult store

Armed suspects sought in adult store robbery

UPDATED: 10 Safeways in Lower Mainland to close

Locations in Vancouver, Burnaby, Surrey, Coquitlam, Richmond and Mission slated to shut

Vancouver Islanders ponder need for tsunami siren song

Alarm sounds in Port Alberni but not at the DND base in Esquimalt

Five charged in bid to shut pop-up pot market in Vancouver’s Robson Square

Marijuana flower, edibles, money and some weapons were seized as part of weekend raid

Babcock, Goyette and Smyth honoured at Order of Hockey in Canada

Mike Babcock, from Saskatoon, guided the Detroit Red Wings to a Stanley Cup in 2008

Bell Canada alerts customers who may be affected by latest data breach

Federal Office of the Privacy Commissioner said it had been notified

‘The tsunami alarm failed my household’: North Coast residents concerned over sirens, alerts

People living in northern communities share how they learned about Tuesday’s tsunami warning

Most Read