The rebound, following a short slump late last year, underscores just how difficult it is to control runaway prices.
The housing market is roaring back to life in Vancouver, B.C.
New home prices in Canada’s most-expensive market jumped 1.5 percent in June, and have gained 5 percent since March, data released Thursday by Statistics Canada show. That’s the biggest three-month increase since 1990.
Prices for existing homes are also on fire, gaining 11 percent in the five months through July, according to data released this month by Vancouver’s real estate board.
The rebound, following a short slump late last year, underscores just how difficult it is to control runaway prices in the face of historically low interest rates and purchasing by foreign investors. Vancouver has become a test lab for Canadian policymakers seeking to engineer a soft landing.
Canada tightened mortgage rules several times in recent years to discourage a buildup of record consumer debt and when that didn’t work the British Columbia government set a 15 percent foreign buyer tax last August.
Statistics Canada doesn’t include condominiums in its new home price index.