Royal LePage records strong house price gains in the third quarter of
2013
TORONTO, Oct. 10, 2013 /CNW/ - According to the Royal LePage House Price
Survey released today, the average price of a home in Canada increased
between 1.2 per cent and 4.1 per cent in the third quarter of 2013.
The survey showed a year-over-year average price increase of 3.7 per
cent to $418,686 for standard two-storey homes, while detached
bungalows rose 4.1 per cent to $381,811. During the same period, the
average price for standard condominiums saw a more moderate increase,
rising 1.2 per cent to $246,530. Sales volumes surged in a number of
regions, as Canadians re-entered the housing market after sitting on
the sidelines for more than a year - marking the end of the most
significant housing market correction since the 2008-2009 global
recession.
"Canada experienced a significant housing market correction over the
last four quarters that most in the nation missed entirely," said Phil
Soper, president and chief executive of Royal LePage. "Many regions
experienced dramatic slowdowns in the number of homes trading hands,
but news of double-digit unit sales declines went largely unnoticed,
over-shadowed by a macabre fascination with the prospect of a
U.S.-style home price collapse, which of course never transpired. Our
over-heated real estate market of 2011 and early 2012 drove some to the
sidelines. Home price appreciation ground to a halt for a year - a
necessary breather and predictable market response."
According to the Royal LePage survey, St. John's, Toronto, Winnipeg,
Saskatoon and Calgary led the country in home price increases, while
Vancouver posted year-over-year price gains across all three housing
categories.
"Our housing market turned a corner in the third quarter. Buyers
returned to the streets in droves, resulting in a sharp increase in
home sales. In many cities, there simply weren't enough properties on
the market to satisfy demand, which put upward pressure on prices for
the first time in 2013," continued Soper. "We expect this positive
momentum to continue through the all-important spring market of 2014,
buoyed by a combination of pent-up demand, increasing consumer
confidence and continued low interest rates."
Last month, a number of prominent financial institutions upgraded their
projections on Canada's future gross domestic product (GDP) growth. TD
Bank raised its outlook for Canadian GDP growth for the third quarter
to an annual rate of 2.3 per cent, while maintaining its forecast that
full-year growth will be 1.7 per cent in 2013 and 2.4 per cent in 2014.
RBC posted slightly higher GDP growth numbers for this year and next of
1.8 and 2.8 per cent, respectively. In the same month Statistics Canada
reported that Canada's economy created 59,000 jobs in August,
approximately triple what most economists had forecast.
"Job growth begets consumer confidence. An emboldened citizen is more
likely to enter into a major financial transaction. Following almost
six years of turbulent times, economic fundamentals are pointing to an
era of renewed prosperity. The American economy is on an upward
trajectory and businesses in Canada and around the world are finally
loosening purse strings and investing in people for growth. This is
vitally important for an exporting nation like ours. And as goes the
Canadian economy, so goes the residential real estate sector,"
explained Soper.
"Emerging headwinds for Canada's real estate market include the
demographic trend of simply having fewer people of home-buying age than
in the 2000s, but this will be offset by immigration and social
change. Baby Boomers are living longer than their parents, extending
that generations period of active real estate participation. At the
other end of the scale, single people, and in particular single women,
are buying homes earlier and at a faster rate than ever before."
Soper concluded, "while interest rates must of course rise from current
historical lows, we anticipate the change to be modest in the medium
term. As the country emerges from this extended correctional cycle, we
believe the real estate market stimulus previously provided by low
interest rates will be replaced by a strengthening labour market and
true economic recovery."
Regional Market Summaries
In Halifax, standard two-storey homes and standard condominiums each posted strong
year-over-year price gains of 5.9 per cent, landing at $329,333 and
$214,000 respectively. Detached bungalow prices saw a more modest gain
of 2.0 per cent to $299,000.
Strong activity in all housing types has led to significant price
appreciation in the St. John's housing market. Standard two-storey home, detached bungalow and
standard condominium prices each posted substantial gains of 12.1 per
cent year-over-year, landing at $400,333, $296,000, and $315,333
respectively.
After a slow start to 2013, house prices started to stabilize this
quarter in the Montreal market. Consumer preference for two-storey homes kept demand lower for
detached bungalows, resulting in a very modest 0.6 per cent
year-over-year increase to $289,306. Standard two-storey homes
witnessed the greatest increase, rising 3.9 per cent to $403,007, while
still higher than usual inventory kept standard condominiums to a more
moderate 1.2 per cent increase, landing at $239,819.
Mixed results characterized the Ottawa housing market this quarter, with a strong demand for higher-end
housing driving prices in detached homes, while increased inventory
drove slight price declines in the condominium market. Standard
two-storey homes showed steady year-over-year price growth, increasing
2.4 per cent year-over-year to $401,500 while detached bungalows posted
a 2.3 per cent increase to $398,417. Standard condominium prices
declined by 1.1 per cent to $259,000.
Pent-up demand from a slower start to spring contributed to increased
activity in the Toronto housing market over the summer. Detached bungalows and standard
two-storey homes both saw healthy year-over-year price appreciation in
the third quarter, rising 5.0 per cent to $577,563 and 4.1 per cent to
$678,016, respectively. Standard condominiums were essentially flat
compared to last year, inching up 0.3 per cent to an average price of
$355,483.
A later than usual start to the market this year led to pent-up demand
and price increases in Winnipeg in the third quarter. Standard two-storey homes saw a significant
price increase of 8.6 per cent year-over-year to $346,765, while
detached bungalows increased 4.2 per cent to $307,069. During the same
period, the average price for a standard condominium increased 3.5 per
cent to $195,226.
Prices continue to rise, but are beginning to level off in the Regina house market. Standard two-storey home prices saw the greatest gains,
rising 3.5 per cent year-over-year to $372,250. Detached bungalows
remained relatively flat, edging up by 0.4 per cent to $336,500, and
standard condominium prices also rose slightly, by 0.9 per cent to
$212,622.
A sustained period of low housing inventory coupled with a healthy
economy and an influx of corporate sector workers has fuelled strong
price growth in Calgary. Average home prices in the city were buoyant in the third quarter
with detached bungalows increasing 7.2 per cent year-over-year to
$465,411, standard condominiums increasing 5.6 per cent to $263,087 and
standard two-storey homes increasing 3.4 per cent to $446,411.
Slowing activity in the Edmonton market has held average housing prices relatively flat. Standard
two-storey homes witnessed a year-over-year increase of 1.5 per cent to
$362,000, while standard condominiums edged up 0.5 per cent to
$203,637. Prices for detached bungalows increased slightly over the
same period, rising 0.7 per cent to $337,804.
A resurgence in market activity across all housing types has led to
strong price appreciation in the Vancouver market. Detached bungalows saw a sizeable increase of 5.6 per cent
year-over-year to $1,070,000 and standard two-storey homes rose 2.7 per
cent to $1,156,500. Standard condominiums were also up, increasing 1.2
per cent to $503,750.
Royal LePage's quarterly House Price Survey shows the annual change of
prices for key housing segments in select national markets.
|
Detached Bungalows
|
Standard Two Storey
|
Standard Condominium
|
|
Market
|
Q3 2013
Average
|
Last
Quarter
Avg
|
Q3 2012
Average
|
Bungalow
% Change
|
Q3 2013
Average
|
Last
Quarter
Avg
|
Q3 2012
Average
|
TwoStorey
% Change
|
Q3 2013
Average
|
Last
Quarter
Avg
|
Q3 2012
Average
|
Condo
%
Change
|
Halifax
|
299,000
|
288,667
|
293,000
|
2.0%
|
329,333
|
333,167
|
311,000
|
5.9%
|
214,000
|
215,950
|
202,000
|
5.9%
|
Charlottetown
|
173,000
|
173,000
|
172,000
|
0.6%
|
205,000
|
205,000
|
205,000
|
0.0%
|
128,000
|
128,000
|
127,000
|
0.8%
|
Moncton
|
148,000
|
153,000
|
147,900
|
0.1%
|
145,000
|
143,300
|
134,600
|
7.7%
|
|
|
|
|
Fredericton
|
207,000
|
207,000
|
205,000
|
1.0%
|
215,000
|
220,000
|
220,000
|
-2.3%
|
153,000
|
158,000
|
158,000
|
-3.2%
|
Saint John
|
176,092
|
177,828
|
186,034
|
-5.3%
|
278,895
|
279,922
|
272,591
|
2.3%
|
156,905
|
158,068
|
158,225
|
-0.8%
|
St. John's
|
296,000
|
290,000
|
264,167
|
12.1%
|
400,333
|
392,667
|
357,000
|
12.1%
|
315,333
|
309,333
|
281,333
|
12.1%
|
Montreal
|
289,306
|
288,868
|
287,500
|
0.6%
|
403,007
|
397,643
|
387,786
|
3.9%
|
239,819
|
240,306
|
236,989
|
1.2%
|
Ottawa
|
398,417
|
396,483
|
389,583
|
2.3%
|
401,500
|
398,983
|
392,167
|
2.4%
|
259,000
|
259,417
|
261,833
|
-1.1%
|
Toronto
|
577,563
|
572,263
|
550,025
|
5.0%
|
678,016
|
676,087
|
651,594
|
4.1%
|
355,483
|
361,842
|
354,567
|
0.3%
|
Hamilton
|
228, 901
|
222,761
|
214,796
|
6.6%
|
294,919
|
294,928
|
289,634
|
1.8%
|
|
|
|
|
Winnipeg
|
307,069
|
305,010
|
294,625
|
4.2%
|
346,765
|
344,598
|
319,250
|
8.6%
|
195,226
|
198,431
|
188,714
|
3.5%
|
Regina
|
336,500
|
330,000
|
335,000
|
0.4%
|
372,250
|
363,000
|
359,500
|
3.5%
|
212,622
|
205,500
|
210,750
|
0.9%
|
Saskatoon
|
366,250
|
369,250
|
348,000
|
5.2%
|
399,750
|
394,250
|
373,500
|
7.0%
|
255,000
|
255,000
|
252,333
|
1.1%
|
Calgary
|
465,411
|
457,889
|
434,267
|
7.2%
|
446,411
|
453,789
|
431,544
|
3.4%
|
263,087
|
261,933
|
249,167
|
5.6%
|
Edmonton
|
337,804
|
347,344
|
335,429
|
0.7%
|
362,000
|
361,636
|
356,714
|
1.5%
|
203,637
|
204,755
|
202,714
|
0.5%
|
Vancouver
|
1,070,000
|
1,052,500
|
1,013,500
|
5.6%
|
1,156,500
|
1,151,250
|
1,125,750
|
2.7%
|
503,750
|
490,475
|
498,000
|
1.2%
|
Victoria
|
458,000
|
453,100
|
450,000
|
1.8%
|
462,000
|
461,000
|
455,000
|
1.5%
|
268,000
|
267,400
|
275,000
|
-2.5%
|
National
|
381,811
|
386,547
|
366,773
|
4.1%
|
418,686
|
419,614
|
403,747
|
3.7%
|
246,530
|
248,750
|
243,607
|
1.2%
|
About the Royal LePage House Price Survey
The Royal LePage House Price Survey is the largest, most comprehensive
study of its kind in Canada, with information on seven types of housing
in over 250 neighbourhoods from coast to coast. This release references
an abbreviated version of the survey which highlights house price
trends for the three most common types of housing in Canada in 90
communities across the country. A complete database of past and present
surveys is available on the Royal LePage website at www.royallepage.ca. Current figures will be updated following the complete tabulation of
the data for the second quarter of 2013. A printable version of the
second quarter 2013 survey will be available online on November 7,
2013. Housing values in the Royal LePage House Price Survey are Royal
LePage opinions of fair market value in each location, based on local
data and market knowledge provided by Royal LePage residential real
estate experts.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading
provider of services to real estate brokerages, with a network of
14,500 real estate professionals in over 600 locations nationwide.
Royal LePage is the only Canadian real estate company to have its own
charitable foundation, the Royal LePage Shelter Foundation, dedicated
to supporting women's and children's shelters and educational programs
aimed at ending domestic violence. Royal LePage is a Brookfield Real
Estate Services Inc. company, a TSX-listed corporation trading under
the symbol TSX:BRE.
For more information, visit www.royallepage.ca.
SOURCE Royal LePage Real Estate Services