Only university tuitions are increasing at comparable rates
Ashley Ford
Province
A development in Vernon, the B.C. community leading the provincial real-estate pack.
Yeah, yeah, we all know that B.C. housing prices are ripping out of sight and sanity.
But pause a moment and reflect that everything else in life has gone up over the past half-decade as well, says Century 21 in its latest National House Price Survey.
Trying to put some relevance on skyrocketing housing prices, the survey compares a basket of items, ranging from hockey tickets to education to the Canadian dollar, which has jumped 41 per cent from five years ago.
The survey, however, shows that real estate has been the stellar performer, with Vernon leading the pack of 38 Canadian communities in the report.
House prices in the Okanagan city rose 129 per cent over the past five years — well above the national average of 53 per cent.
Overall, Canadian prices rose nearly five times faster than the 11-per-cent overall increase in consumer prices.
Other booming housing markets included Calgary northeast, which increased 121 per cent, Fort McMurray, Alta., (105 per cent), Kelowna (89 per cent) and North Vancouver (87 per cent).
“Increases in Canadian house prices over the past five years — dramatic in Alberta and British Columbia and strong in the rest of the country — are the result of a robust economy that has also seen a dramatic rise in key Canadian economic indicators and popular lifestyle and consumer items,” said the report.
Current roaring stock markets notwithstanding, the Toronto Stock Exchange over the same period only increased by 45 per cent.
Gasoline increased 63 per cent in Vancouver, milk rose 20 per cent and the most-affordable Canucks ticket only rose a paltry 13 per cent.
A 12-pack of beer rose 15 per cent, while the best-selling car in Canada, the Honda Civic, increased by only 10 per cent to $19,405 from $17,650.
A university education in B.C., however, has savaged the pockets of students. Average undergraduate tuition increased to $4,874 from $2,592, an 88-per-cent increase, the largest jump in fees in Canada.
Century 21 president Don Lawby said housing prices reflect a significant increase in jobs and wages and continuing moderate interest rates.
The bubbling economy and shortage of skilled workers will continue to draw people to B.C., he said.
“The energy industry and the new contribution infrastructure have been the main drivers of growth and now the new softwood-lumber agreement will inject vigour into the forest sector,” he added.
Further, the surge in house prices, especially in some parts of the country, isn’t over, according to Canada Mortgage and Housing Corp.
The federal housing agency is forecasting a 11.2-per-cent jump in house prices nationwide this year with more than a 20-per-cent increase in Alberta and B.C., said CMHC chief economist Bob Dugan.
© The Vancouver Province 2006
