It’s little surprise home prices have risen in Vancouver over five years. But just how much equity has this created for homeowners?
The benchmark price of detached homes in Metro Vancouver rose from $1,606,700 to $2,014,900 between July 2018 and July 2023, according to a Sept. 5 report by online real estate service Zoocasa.
A home purchased at that benchmark price would have seen its equity increase $408,200 as a result.
Metro Vancouver’s detached homes come second to the Greater Toronto Area for the country’s largest increase in home equity, the latter region tallying $487,700 built up over the last five years.
Most detached homes across Canadian regions have increased in value by more than $150,000 over the same period.
“Though the real estate market is known to fluctuate, over time home prices generally trend upwards, which is good news for homeowners. In most cases, the longer it’s been since purchasing your home, the more its value tends to increase,” said the report.
The report noted that the amount of equity built in a home is dependent on outstanding loans or mortgage payments, but that built equity is also “largely dependent on the home’s current market value.”
The most recent composite benchmark price for all property types in the Vancouver region is $1,208,400 – an increase of 2.5 per cent compared with August 2022 and a 0.2 per cent decrease compared with July 2023, according to the Real Estate Board of Greater Vancouver.
While prices have risen over the past year due to low inventory levels, it is expected that price gains will slow in the coming months, the real estate board said in a Sept. 5 news release.
“Ultimately, real estate is expensive. It's unattainable for many people across ÎÚÑ»´«Ã½, we know that. However, it's important to remember that, ultimately, it is a good long-term investment pretty much across the country for those that it is attainable for,” Zoocasa spokeswoman Patti Cosgarea said in an interview.
Equity built in Metro Vancouver condos has not been as pronounced as in detached homes. A condo purchased at the benchmark price in July 2018 ($660,000) has built $111,600 in equity as the benchmark price rose to $771,600 by July 2023.
The Greater Toronto Area recorded the largest increase in condo equity at $239,600 as benchmark prices went from $488,400 to $728,000 over the last five years.
“The rate of increase [for Metro Vancouver] is a little bit less dramatic compared with cities that have lower-priced condos,” said Cosgarea.
