Vancouver townhouses, condos, and houses—oh my! There’s no doubt that real estate is expensive in this lovely city. And there’s no doubt you already realize this. But have you ever wondered just what the average mortgage looks like? According to a TransUnion report released in August, for the first quarter of 2017, the average size of a new mortgage in Vancouver was $517,415.
After various measures imposed by the government to slow the runaway housing market, Vancouver home buyers have been taking out fewer and smaller mortgages. The average mortgage, just a year earlier, was $553,719. In addition, over that same period of time the number of new mortgages fell from 9,162 to 6,226.
In BC overall, the average size of a new mortgage was $375,126 in the first quarter, compared with $384,430 a year earlier, and the actual number of new mortgages fell by 20 percent to 25,734.
Home sales slowed a year ago when the provincial government slapped a 15 percent tax on foreign buyers, which had a cooling effect, but activity has increased in recent months. In July, the average price of a detached house in the Vancouver area hit $1.7 million.
TransUnion looked at credit data before the Bank of Canada hiked the benchmark interest rate by 25 basis points to 0.75 percent, making it slightly more expensive for consumers to borrow funds.
Vancouver Townhouse and Condo Market Sill Accelerating
While prices for detached homes have stabilized, the Vancouver townhouse and condo market is still accelerating. This demand is driven by downsizers, and first-time buyers looking for a relatively affordable entry point into the market.