Royal LePage reports a not too hot, not too
cold "Goldilocks market" in most regions of Canada
TORONTO, Oct. 15, 2014 /CNW/ - Housing prices across
the country are showing signs of moderating, according to the Royal
LePage House Price Survey, released today. According to the
survey, the average price of a home in Canada rose between 4.4 per cent and 6.1 per
cent year-over-year in the third quarter of 2014. During this
period, the average price of a standard two-storey home rose 5.5
per cent to $441,714, while detached
bungalows increased 6.1 per cent to $405,101. Condominiums on average showed
slightly lower year-over-year gains, posting a 4.4 per cent
increase to $257,377.
"In the seven years since the Canadian housing market began its
recovery from the worldwide recession, home price growth has been
robust, often greater than the long-term average of approximately
five per cent," said Phil Soper,
president and chief executive of Royal LePage. "We are now
experiencing a natural slowing in the rate of year-over-year price
appreciation, with real estate markets moderating in most parts of
the country, a transition to what our agents refer to as a
'Goldilocks market,' one that is neither too hot, nor too cold. To
be clear, we expect home prices to continue to grow in the months
ahead, but at a slower rate than we have seen in recent years."
Toronto and Calgary led the country in both price
appreciation and unit sales levels, bucking the trend of moderation
seen in most regions of the country. In the third quarter, the
average price of a detached home in Toronto increased between 7.2 and 8.0 per
cent, with the city edging toward 2007 peak units sales levels. In
Calgary, housing demand from a
rapidly expanding workforce once again outpaced new listings,
putting continued upward pressure on prices in the city.
Canada's economic performance
continued to improve over the last quarter. Against a backdrop of
continued low interest rates, conditions were generally supportive
of the nation's housing industry. A lower Canadian dollar
should continue to stimulate international demand and growth in the
country's export sector. The Bank of Canada believes that business investment will
continue to improve through 2015, stimulating job growth and
reducing slack capacity in the economy. Externally, the IMF
(International Monetary Fund) has revised upwards its growth
expectations for both Canada and
the United States, stating that
the recovery appears largely on track.
"Amidst political and economic instability in many corners of
the world, the Canadian and American economies are expanding
nicely," said Soper. "It is particularly gratifying to see our
neighbours to the south back on track as a healthy America is a
hungry America, and Canadian exports are on the menu. The Canadian
dollar is currently sitting in a sweet spot that is low enough to
support economic growth in an impactful way, yet not so low as to
suggest pending economic troubles. Expect the resulting growth in
exports to stimulate improvement in domestic business investment
which should drive new and better jobs, and nothing save low
interest rates propels the housing market like job creation."
"The brisk pace, sometimes approaching frenetic, that we have
seen in recent months in some of Canada's largest real estate markets is
slowing. Slower, yet still growing. And the current environment
remains supportive of a healthy and sustainable housing market,"
concluded Soper. "Further, early indicators, such as declines
in the number of new listings in some key cities, suggests that as
demand slows, so shall supply, further protecting Canadian
homeowners' primary investment."
Regional Market Summaries
A surplus of inventory and slowed activity levels left
Halifax housing prices
relatively flat in the third quarter. Standard condominium
prices increased by 1.6 per cent year-over-year to $217,500 while the price of a standard two-storey
home saw only a slight lift of 0.8 per cent to $331,833. Detached bungalows were the only
housing type to see a price decrease, dipping 1.6 per cent to
$294,333.
The St. John's market,
in contrast, continued to experience strong price appreciation
across all housing types. The price of standard two-storey
homes experienced the greatest gains, jumping 6.0 per cent
year-over-year to $424,167.
Detached bungalow prices followed closely, rising 5.9 per cent to
$313,500. Standard condominium
prices also realized healthy increases, increasing 5.1 per cent to
$331,500.
In Montreal, the average
price of detached bungalows increased 2.6 per cent year-over-year
to $296,857. In the same quarter,
standard two-storey homes and condominiums remained relatively
flat, rising 0.2 per cent to $403,714
and 0.5 per cent to $241,000,
respectively.
The slower winter and spring seasons left the Ottawa housing market with a surplus of
inventory in the third quarter, holding prices relatively flat in
the region. Detached bungalow and standard two-storey home
prices each increased by 1.2 per cent year-over-year, to
$403,091 and $406,264, respectively. Standard
condominium prices saw a slight decline in price, dropping 0.3 per
cent to $258,132.
Low levels of inventory combined with an unseasonably active
August market contributed to significant price increases across all
major Toronto housing
types. Standard condominium prices saw the greatest increase
rising 8.0 per cent year-over-year to $383,039. Detached bungalows rose 7.2 per cent to
$618,088, while prices for standard
two-storey homes increased 7.6 per cent to $733,317.
Mixed results characterized the Winnipeg housing market in the third
quarter. Increasing inventory levels kept the price of detached
homes relatively flat, with detached bungalows rising 0.5 per cent
year-over-year to $308,706, and
standard two-storey homes experiencing a slight decline of 1.4 per
cent to $341,863. Standard
condominium prices, in contrast, surged by 6.8 per cent to
$208,510.
The Regina housing market also witnessed varied results
this quarter. Significant levels of new construction have
tempered the price growth seen in recent quarters, and have pushed
prices down in the detached home market. The average price
for standard two-storey homes decreased 6.9 per cent year-over-year
to $346,450, and detached bungalow
prices dropped 7.9 percent to $307,250. In contrast, the average price
for a standard condominium continued to appreciate, increasing 1.0
per cent year-over-year to $214,748.
The Calgary housing
market continued to be among the strongest in the country.
Demand was strong across all housing types, and continued to
outstrip supply. The average price for standard condominiums
surged 11.8 per cent year-over-year to $294,156 and detached bungalows increased 10.8
per cent to $515,844. Standard
two-storey home prices were consistent with this trend, increasing
9.2 per cent to $499,811.
Edmonton also saw strong
price appreciation across all housing types surveyed. Detached
bungalow prices showed the strongest gain, increasing 6.0 per cent
year-over-year to $357,240.
Standard two-storey home prices also continued to climb, rising 5.3
per cent to $379,463, while standard
condominiums rose a healthy 5.8 per cent to $232,340.
Price increases remained strong in the Vancouver housing market in the third
quarter. Detached bungalow prices saw the largest increase,
climbing 6.1 per cent to $1,135,009. Standard two-storey homes also
experienced strong growth, rising 5.6 per cent to $1,220,909. In contrast, standard
condominium prices cooled slightly, dipping 0.2 per cent to
$502,869.
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 2014
Average
|
Last Quarter
Avg
|
Q3 2013
Average
|
Bungalow%
Change
|
Q3 2014
Average
|
Last Quarter
Avg
|
Q3 2013
Average
|
2 Storey %
Change
|
Q3 2014
Average
|
Last Quarter
Avg
|
Q3 2013
Average
|
Condo %
Change
|
Halifax
|
294,333
|
292,167
|
299,000
|
-1.6%
|
331,833
|
325,633
|
329,333
|
0.8%
|
217,500
|
217,500
|
214,000
|
1.6%
|
Charlottetown
|
173,000
|
175,000
|
173,000
|
0.0%
|
205,000
|
205,000
|
205,000
|
0.0%
|
128,000
|
130,000
|
128,000
|
0.0%
|
Fredericton
|
202,000
|
200,000
|
207,000
|
-2.4%
|
215,000
|
215,000
|
215,000
|
0.0%
|
145,000
|
145,000
|
153,000
|
-5.2%
|
Moncton
|
150,911
|
149,648
|
148,000
|
2.0%
|
155,157
|
152,302
|
145,000
|
7.0%
|
|
|
|
|
Saint
John
|
155,104
|
179,150
|
167,314
|
-7.3%
|
206,524
|
278,145
|
235,556
|
-12.3%
|
155,819
|
155,000
|
163,900
|
-4.9%
|
St.
John's
|
313,500
|
303,533
|
296,000
|
5.9%
|
424,167
|
412,233
|
400,333
|
6.0%
|
331,500
|
306,000
|
315,333
|
5.1%
|
Montreal
|
296,857
|
296,250
|
289,306
|
2.6%
|
403,714
|
404,214
|
403,014
|
0.2%
|
241,000
|
239,611
|
239,833
|
0.5%
|
Ottawa
|
403,091
|
401,667
|
398,167
|
1.2%
|
406,264
|
401,250
|
401,500
|
1.2%
|
258,132
|
257,500
|
259,000
|
-0.3%
|
Toronto
|
618,088
|
611,906
|
576,313
|
7.2%
|
733,317
|
722,079
|
681,545
|
7.6%
|
383,039
|
378,548
|
354,769
|
8.0%
|
Hamilton
|
244,409
|
240,416
|
228,901
|
6.8%
|
324,874
|
301,289
|
294,919
|
10.2%
|
|
|
|
|
Winnipeg
|
308,706
|
311,015
|
307,069
|
0.5%
|
341,863
|
336,241
|
346,860
|
-1.4%
|
208,510
|
209,023
|
195,226
|
6.8%
|
Regina
|
307,250
|
333,500
|
333,500
|
-7.9%
|
346,450
|
372,500
|
372,250
|
-6.9%
|
214,748
|
217,500
|
212,622
|
1.0%
|
Saskatoon
|
368,750
|
375,000
|
366,250
|
0.7%
|
408,250
|
394,250
|
399,750
|
2.1%
|
257,000
|
261,333
|
255,000
|
0.8%
|
Calgary
|
515,844
|
501,200
|
465,411
|
10.8%
|
499,811
|
489,589
|
457,522
|
9.2%
|
294,156
|
286,422
|
263,087
|
11.8%
|
Edmonton
|
357,240
|
350,401
|
337,000
|
6.0%
|
379,463
|
372,112
|
360,270
|
5.3%
|
232,340
|
236,429
|
219,548
|
5.8%
|
Vancouver
|
1,135,009
|
1,107,290
|
1,070,000
|
6.1%
|
1,220,909
|
1,204,011
|
1,156,500
|
5.6%
|
502,869
|
491,984
|
503,750
|
-0.2%
|
Victoria
|
468,000
|
467,000
|
458,000
|
2.2%
|
477,000
|
478,000
|
462,000
|
3.2%
|
270,000
|
272,000
|
268,000
|
0.7%
|
National
|
405,101
|
406,454
|
381,811
|
6.1%
|
441,714
|
440,972
|
418,686
|
5.5%
|
257,377
|
258,501
|
246,530
|
4.4%
|
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 third quarter of 2014. A
printable version of the third quarter 2014 survey will be
available online on November 12,
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 over 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 Limited