Greater Vancouver housing prices remain well above the Canadian average, and this divide is only going to grow in 2016, according to a RE/MAX report released December 10.

In 2015, the average price for a home in the region is estimated at $947,350, according to the report. When compared with 2014, this is a 17% increase—the highest growth in Canada over the period. This momentum is only going to continue, and in 2016, the average price is expected to grow a further 7%, reaching $1,013,665.

The only other Canadian city that is expected to see growth even remotely close to the 7% seen here is Toronto, with an expect 5% increase to $653,258.

“High demand and low supply continued to characterize Vancouver’s and Toronto’s housing markets throughout 2015 as competition from buyers over the limited inventory of single-family homes pushed prices higher,” RE/MAX said in a price release.

“As demand shows no signs of waning, these markets are expected to continue to see price appreciation in 2016.”

Cities close to Vancouver and Toronto are experiencing a “spillover effect,” the study found.

“There were significant year-over-year price increases in Victoria (13%), Fraser Valley (10%), Hamilton-Burlington (12%) and Barrie (8%),” the release said.

One reason Vancouver and Toronto are seeing such high rates of growth is the influx of new Canadians.

“Attracted to Canada’s stable economy and low Canadian dollar, this trend is expected to continue through 2016,” the report said.

The Canadian Department of Finance is looking into raising the minimum downpayment on homes over $500,000. RE/MAX said that, for the most part, this will have little impact on first-time homebuyers in most cities across Canada, but “in Vancouver and Toronto, where entry-level homes are often above the $500,000 threshold, these restrictions may be discouraging to some potential buyers.

“According to recent RE/MAX survey findings, over two-thirds of Canadians already agree that 10% or more is a good down payment for a home.”

Vancouver Housing to See Canada’s Biggest Price Jump in 2016 by Emma Crawford Hampel | Business in Vancouver