Home renovations cost $5.7M more than expected, according to data
The average price of a home remodel in Vancouver is $5,000 more than the market average, according a new report by a real estate analytics firm.
In 2016, home renovations in Vancouver were the priciest in Canada, according the data firm Equifax Canada.
The report by Equifax found the average cost of a renovation was $6,800, an increase of $500 from the previous year.
The firm says that the average price increase is due to a growing number of people buying homes on the market, which is pushing up home prices.
It also says there is a higher demand for properties for new construction and the price is trending upward.
It says that in 2016, the average amount of money spent on a home was $5 million.
“A high number of new home purchases are driving the current price rise in Vancouver,” Equifax chief economist Chris Lacy said in a release.
“With new construction, home prices are at record highs and the average purchase price is rising at a record pace.”
The report also says the number of condos is on track to hit a record high of 4.5 million, which equates to a doubling in the number in the city in a decade.
In 2017, there were 6.4 million condos, which translates to an average price in the market of $3.9 million.
Lacy says that this trend will continue, as demand for condos increases.
“The current condo market is driven by an ongoing increase in supply and an increased supply of condos, while the market is in a bubble,” he said.
“While it is difficult to predict what will happen to the condo market in the coming years, it is safe to say that condo prices will continue to rise.”
The average cost for a detached home in Vancouver was $2.6 million in 2016.
Lazy says that’s expected to jump to $2 million by 2019.
He says there’s also an expected jump in home price inflation due to more people moving to the city.
He also expects the average mortgage payment to increase by another $300 over the next three years.
“It’s not a good time to be a homeowner in Vancouver and that’s a very important fact to remember,” Lacy added.
“You don’t want to be underwater on your mortgage, or in debt for your entire life.”
He says Vancouver’s housing affordability is in the middle of a bubble, and it’s not sustainable for the city to continue growing.
He predicts a “slow but steady” increase in prices.
“I’m not surprised that the real estate market is booming in Vancouver because it’s the perfect environment to take advantage of the market,” Lazy said.