Asymmetrical Price Appreciation

With the booming real estate market in Vancouver, it is no doubt that prices have appreciated due to the high demand. What's interesting is the asymmetrical price appreciation seen in the housing market. More expensive properties are seeing prices rise at a faster rate than those of their less expensive counterparts. Price gaps seen between houses, condominiums and detached homes are beginning to widen with Vancouver leading the biggest home price gap increases within Canada. This could be the result of foreign investment activity in Vancouver, especially within the luxury market segment. Housing priced in the higher end of the spectrum are more vulnerable to price adjustments.

The asymmetrical price appreciation has been evident in Vancouver for the past ten years which is predominantly caused by the rapid price increase of luxury homes. Housing prices have seen an overall increase, however, luxury home prices are leading the pack with the rate of increase nearly quadrupling the rates of those in the lower end of the spectrum. Homeowners within the move up market are primarily affected by this asymmetry. This phenomenon is limiting the ability for homeowners to "move up" into a bigger home and is even affecting first-time homeowners as well.

As a result of the inability to move up, homeowners are beginning to invest more in renovations as it is seen to be a more cost effective measure. Stay tuned for our next blog which tackles the issue of how to renovate your home while remaining on budget. For all your real estate needs, contact Amalia Liapis at amalia@wesellvancouver.ca or alternatively at 604-618-7000.

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.