Strong economy and higher than usual sales volumes contribute to
balanced real estate market
SASKATOON, Jan. 9, 2014 /CNW/ - The Royal LePage House Price Survey and
Market Survey Forecast released today showed small year-over-year price
increases across major housing types surveyed.
There was mild price appreciation in the major categories surveyed, with
detached bungalows increasing 1.0 per cent to $367,250, standard
two-storey homes increasing 0.7 per cent to $379,250 and condominiums
increasing 1.3 per cent to $264,667.
"Most housing types have been stable over the past year, with relatively
modest price appreciation across the board," said Norm Fisher, broker, Royal LePage Saskatoon. "There are lots of options available in
Saskatoon to willing buyers, with a steady supply of new builds to
complement the resale market. Despite the bump in supply, demand has
been strong enough that the increased inventory hasn't resulted in a
buyer's market but homebuyers certainly have more clout at the
negotiating table than they had over the previous two quarters."
Fisher added that this year has been very good for residential real
estate in Saskatoon. After a slow start to the year there has been
sustained growth in the number of homes changing hands. 2013 closes as
the second strongest year on record for the number of homes sold in
Saskatoon. The fourth quarter, which has traditionally been a slower
period, has witnessed a higher than usual number of sales.
Royal LePage is forecasting stable prices with perhaps moderate gains in
the most popular housing categories for 2014 as the Saskatoon economy
continues to grow. "Saskatoon is predicted to have one of the best
performing economies in 2014," stated Fisher. "Employment is quite
strong, income growth has been better than most provinces and there is
an influx of people into the province. These factors combined with low
interest rates and relatively high rents point to our residential real
estate market remaining strong through 2014."
"We may see the same volume of houses being bought and sold as in 2013,
but the market here is likely to remain very competitive for sellers,"
Fisher concluded.
Nationally, the average price of a home in Canada increased between 1.2
per cent and 3.8 per cent in the fourth quarter.
The survey showed year-over-year average price increases in the fourth
quarter of 2013 of 3.6 per cent to $418,282 for standard two-storey
homes and 3.8 per cent to $380,710 for detached bungalows, while the
average price of a standard condominium rose 1.2 per cent to $246,530.
Prices are expected to maintain healthy momentum into 2014, with Royal
LePage projecting a 3.7 per cent increase nationally from 2013 and a
shift to a seller's market in the first portion of the year in a number
of regions.
"A few short months ago, the country's housing market emerged from a
year-long correctional cycle of dramatically slowed sales volumes.
Later 2013 was marked by a transition to buoyant sales volumes and
above average price growth," said Phil Soper, president and chief
executive of Royal LePage. "In the absence of some calamitous event or
material increase in mortgage financing costs, we expect this positive
momentum to characterize 2014. In fact, we expect a market tipped
decidedly in favour of sellers for the first half of the year, after
which we project a shift to a more balanced market."
"We predict continued upward pressure on home prices as we move towards
the all-important spring market. In addition to normal demand, housing
prices in Canada this year will be influenced by buyers who put off
purchase plans in the very soft spring of 2013," continued Soper. "Talk
of a 'soft landing' for Canada's real estate market in the new year is
misguided. We expect no landing, no slowdown, and no correction in the
near-term. Conditions are ripe for as strong a market as we saw in the
post-recessionary rebound of the last decade."
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 fourth quarter of 2013. A printable version of the
fourth quarter 2013 survey will be available online on February 6,
2014. 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
nearly 15,000 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
