Year-over-year price appreciation witnessed in all housing types
reverses recent downward trend
VANCOUVER, Oct. 10, 2013 /CNW/ - The Royal LePage House Price Survey
released today showed year-over-year price increases in all housing
types surveyed in Vancouver.
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, rising 1.2 per
cent to $503,750.
"The Vancouver real estate market showed some resurgence in the third
quarter, with prices for bungalows, two-storey homes and standard
condominiums all back on the rise," said Bill Binnie, broker/owner,
Royal LePage Northshore. "Activity has picked up significantly since
last year and we are back to having a busy and vibrant market in this
city."
Binnie pointed out that market activity was quite high this quarter,
particularly in the detached home market. "Even with the increase in
activity, buyers are still being judicious. Multiple offers occur
occasionally, but only for well-priced properties in neighbourhoods
with good transportation options," added Binnie.
Chris Simmons, broker/owner, Royal LePage Sunshine Coast noted that
buyers and sellers agree that the Vancouver market has largely worked
its way through the correctional period. "Those who were hoping to see
a significant drop in property values are now reentering the market at
current prices."
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
