VANCOUVER (NEWS1130) – This year’s home price increases in the Vancouver area are predicted to be much smaller than last year’s, according to Royal LePage.

The realty firm’s outlook calls for an average 2.3 per cent increase in local home prices this year which is far below last year’s. It says in 2011, detached bungalows gained 14 per cent to $1 million, two-storey homes rose 11 per cent to $1.1 million, while standard condominiums climbed 11 per cent to $536,000.

Its review of 2011 says foreign purchases of Vancouver homes slowed slightly in the fourth quarter but continue to add to demand.

“Though investment from Asia slowed slightly in the fourth quarter, these buyers continued to view Canadian real estate as a safe place to park their money,” says Royal LePage North Shore owner Bill Binnie.

He also says “calls for a price correction — particularly in the condo market — are unfounded.”

Two bank CEOs this week expressed concern about the condo markets in Vancouver and Toronto.