According the follwoing article from Statistics Canada, the rate of growth for housing price in vancouver (only 6% since 1997!) lags behind that for Toronto (33% since 1997), Calgary (48.6%) and Edmonton (40.5%) by a great deal. Furthermore, during 2005 the rate of increases in vancouver is only 0.4% (that is right, zero point 4 % only!). We note this is a period of historical low interes rates when housing prices in hot US market like Las vagas, NV and Phoenix, Arizona went up by 30% to 50%.

Now, with interest rates are going up all over, it is expected that weak housing market like Vancouver will go DOWN.

Here is the link http://www.statcan.ca/Daily/English/051110/d051110c.htm

New Housing Price Index
September 2005
New housing prices were up 0.6% compared to August. The 12-month increase grew to 4.9% from 4.6% the previous month.

Building materials and labour cost increases combined with higher energy costs were partially offset by moderating demand for new housing. Nonetheless, prices at the national level increased substantially. Land value increases contributed to price hikes in 9 of the 21 metropolitan areas surveyed. In Winnipeg, builders cited a shortage of serviced lots.

According to the New Housing Price Index (which is based on contractors' selling prices of new homes in 21 metropolitan areas), the price of new homes rose 0.6% on a monthly basis, up from the 0.4% increase in August.

The New Housing Price Index (1997=100) rose to 130.8 in September.

Of the 21 metropolitan areas surveyed, 18 posted monthly gains. Calgary led the way with a 1.8% increase followed closely by Saskatoon at 1.7%. Price increases for these two metropolitan areas were affected in large part by higher material costs, in particular lumber, and higher fuel costs which upped transportation and operating expenses. Labour and land costs were also a factor in both metropolitan areas. In Saskatoon, increased land costs were a result of higher development costs and levies.

Halifax (+1.6%), Winnipeg (+1.6%), Edmonton (+1.4%) and Victoria (+1.2%) posted significant increases, mostly due to higher material, labour and land costs.

Monthly increases were also registered in St. John's, Charlottetown, Saint John, Fredericton and Moncton, Montréal, Ottawa–Gatineau, Toronto and Oshawa, St-Catharines–Niagara, Hamilton, London, Greater Sudbury/Grand Sudbury and Thunder Bay, Regina and Vancouver.

Only two metropolitan areas registered no monthly change while Kitchener (-0.2%) had the sole decrease.

New housing price indexes
(1997=100)

September 2005 September 2004 to September 2005 August to September 2005
% change
Canada total 130.8 4.9 0.6
House only 138.8 4.4 0.7
Land only 115.1 5.5 0.5
St.John's 126.1 4.4 0.5
Halifax 129.7 6.5 1.6
Charlottetown 115.8 5.6 0.6
Saint John, Fredericton and Moncton 109.9 3.9 0.5
Québec 136.6 5.0 0.0
Montréal 142.8 4.4 0.6
Ottawa–Gatineau 155.5 4.0 0.3
Toronto and Oshawa 133.8 4.3 0.4
Hamilton 135.5 5.0 0.2
St. Catharines–Niagara 138.3 5.0 0.4
Kitchener 132.2 5.1 -0.2
London 127.2 5.0 0.2
Windsor 105.8 2.7 0.0
Greater Sudbury/Grand Sudbury and Thunder Bay 100.7 1.9 0.3
Winnipeg 135.3 8.5 1.6
Regina 143.6 5.4 0.7
Saskatoon 128.3 3.7 1.7
Calgary 148.6 6.4 1.8
Edmonton 140.5 7.7 1.4

Vancouver 106.8 4.8 0.4

Victoria 117.6 9.6 1.2
Note: View the census subdivisions that comprise the metropolitan areas online.

Available on CANSIM: table 327-0005.

Definitions, data sources and methods: survey number 2310.

The third quarter issue of Capital Expenditure Price Statistics (62-007-XIE, $20/$59) will be available in January.

For more information, or to enquire about the concepts, methods or data quality of this release, contact our Client Services Section (613-951-9606, fax: 613-951-1539; infounit@statcan.ca) or Randy Sterns (613-951-8183; sterran@statcan.ca), Prices Division.

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