High level of activity seen during summer months driven by pent-up
demand
TORONTO, Oct. 10, 2013 /CNW/ - The Royal LePage House Price Survey
released today showed strong year-over-year price gains for most
housing types surveyed in Toronto, with the exception of standard
condominiums, which were almost identical to last year's average
prices.
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.
"We had a much busier summer this year in terms of number of homes sold
in part because of a slower than average start to the year," said Gino
Romanese, senior vice president, Royal LePage. "Unit sales this quarter
were up in all housing types because of the pent-up demand from
buyers."
Romanese stated that while there is good inventory available on the
market, it is matched by strong demand. The one area where supply is
becoming more constrained is bungalows, which witnessed the strongest
year-over-year growth of any housing type.
According to Romanese, there is a tremendous amount of interest in
Toronto real estate, particularly from first-time and "905" buyers
moving into the city. He pointed out that the Echo Generation - the
children of Baby Boomers - are now buying their first property, which
is often a condo.
"The market remains hot for homes that are well-priced and located in
desirable areas," concluded Romanese. "We continue to see frequent
multiple offer situations, as well as an increasing number of
pre-emptive offers."
Nationally, 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."
"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."
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
