A surge in demand for upscale apartments and homes in Vancouver, California has propelled real estate prices to record highs.
According to a report from Realtors.com, the average price of a one-bedroom apartment rose 3.6% in August to $2,739, compared to August 2016.
That is an increase of $1,976 over August of last year.
The median price rose 2.7%.
In Vancouver, prices are still well above the US average of $2.8 million per month.
Realtor.com says the city is currently the most expensive real estate market in the country, with the median price set to hit $2 million in 2018.
However, realtors say the pace of demand is slowing down and that prices will likely remain high for a while.
“As a matter of fact, there is going to be a slowdown in the pace at which demand is going up, which is a great thing for the market, and a good thing for all of us,” said Jeffery Schuster, vice president of real estate for the real estate brokerage RealtyTrac.
The average price for a one bedroom in Vancouver increased to $1.844 million in August from $1 million in July.
The city’s median price is set to jump to $3.2 million, according to Realtory.com.
There is also an increase in sales in the city, with a total of 1,935 new condo and rental units built in the last six months, according of Realtories.com’s report.
However the report notes that Vancouver’s condo market is not growing fast enough.
It says that there are still just over 5,000 condos in the market.
Realtors is optimistic about the future of the condo market, saying the condo boom in Vancouver has been a positive for the city’s economy.
“It’s good news that the Vancouver condo market has finally started to recover, but I do think there’s room for even more growth, which will only lead to more demand for housing,” said Schuster.
He says the Vancouver market is still a very young market, with about 7,000 units under construction.
He expects the market to grow to 10,000 by 2026.
The median price for condos in Vancouver rose 3% to $4,094 per square foot, according the Realtor.com report.