Condo Prices Surge By Nearly 50% In Areas of Metro Vancouver

Steve Saretsky -

One Bedroom Condos Up Nearly 50% Year over Year In Certain Areas

As i’ve been highlighting for some time now, one bedroom condos remain the hottest segment of the market. A growing choir of first time buyers experiencing a ‘just get in’ mentality are driving up prices with hopes of climbing the property ladder.

First time buyers, combined with local investors seeking a secondary investment are clashing to snatch up the remaining one bedroom units. Just last month Vancouver one bedroom condo inventory plunged 53%.

Recent price growth in Vancouver is well documented, but it’s actually the outlying areas experiencing the largest price growth. Here are the top three.

1. New Westminster Condos Increase by 46%

With New Westminster condos nearly flat for almost a decade, prices have exploded over the past year. The average sales price of a one bedroom condo is up 46% year over year. Yes, forty-six. Interactive chart here.

New Westminster condo average sales price
Average Sales Price of a one bedroom condo in New Westminster

2. Surrey Condos Increase by 45% Year over Year

North Surrey (Whalley area) one bedroom condos increased by 45% year over year in August. You’ll notice prices were virtually flat for a long period of time before rapidly accelerating in early 2016. Interactive chart here.

North Surrey condo prices
Surrey condo average sales price surges 45%.

3. Burnaby Condos Increase 28%

Last but not least, Burnaby one bedroom condo units have increased by 28% year over year. Interactive chart here.

Burnaby condo average sales price
Average sales price of a one bedroom condo in Burnaby.

One has to wonder what the ceiling is for one bedroom units. Especially considering incomes are failing to keep pace.

Either way you slice it, whether it’s a shortage of supply, limited land, foreign investors, low interest rates, or excessive credit growth, it seems impossible to justify nearly 50% price growth in one year.

Join Thousands On My Weekly Vancouver Real Estate Round-Up

Join the Monday Newsletter

Every Monday morning you'll receive a short and entertaining round-up of news on the Vancouver & Canadian Real Estate markets.

"*" indicates required fields

The Canadian Economy

Steve Saretsky -

Happy Monday Morning! We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC...

Steve Saretsky -

The calls for impending interest rate hikes continues. CIBC’s chief economist, Benjamin Tal, was out recently suggesting the Bank of Canada could hike its benchmark interest rate at least six times beginning in early 2022. “I think there is a risk of getting into the market at today’s rates,” noted Tal....

Steve Saretsky -

The BC Government announced it is looking at several cooling measures for the housing market in 2022. They have highlighted two measures. The first is an end to the blind bidding process, and the other is a mandatory “cooling off period” which will allow any buyer a 7 day recession...

Steve Saretsky -

The Bank of Canada continues to slowly drain liquidity after flooding the system with a firehose of cash during the pandemic. Bank of Canada governor Tiff Macklem announced the end of Canada’s QE program (also known as money printing). Furthermore, in Macklems words, “We expect to begin increasing our policy...

Steve Saretsky -

Consumer price inflation ripped higher in September, surging 4.4% year-over-year, the fastest pace of price increases in 18 years. Let’s discuss this further. We have an inflation problem and the Bank of Canada remains of the view that inflation will be transitory. Although they really can’t say otherwise, for if...

Get the Saretsky Report to your email every month

The Saretsky Report. December 2022