Home price increases slowing, Royal LePage national survey finds
7/6/05 3:07:00 AM
TORONTO (CP) - House prices in all major Canadian cities continued to rise in the second quarter but the rate of increase eased, Royal LePage Real Estate Services said in a report released Wednesday.
A jump in the number of homes listed for sale helped curb price increases in Montreal, Toronto and the Atlantic region, the report said. "We began to see an inversion of the established geographic trends observed in the Canadian housing market over the past few years," said Phil Soper, chief executive of Royal LePage Real Estate Services.
"Markets such as Vancouver, Toronto and Montreal, where there has been frenetic activity, experienced a softening in the acceleration of price increases. While Edmonton and Saskatchewan, markets where appreciation has been growing at a slower pace, took the lead in terms of accelerated price gains."
However, Soper expects national average prices to continue going higher, driven by the strong economy and low interest rates.
The average price of a standard two-storey house across the country rose six per cent year-over-year in April-June quarter, to $318,390.
Prices for detached bungalows were up 7.1 per cent to $262,845, while the average condominium price jumped 6.5 per cent to $183,397.
"While there has been a softening in the acceleration of price increases in many areas, there has been no corresponding softening of demand," Soper said.
Victoria and Winnipeg kept up double-digit price increases while the Atlantic region showed the most moderate rise.
Halifax prices were stable as cool spring weather and cautious first-time buyers caused a dip in the number of houses sold compared with a year earlier, the report said.
Moncton and Charlottetown also showed little change, while Saint John experienced steady growth fuelled by a strong local economy and in-migration.
In St. John's, average prices rose in all categories, driven partially by a thriving oil and gas sector.
Price appreciation slowed in Montreal after years of double-digit percentage increases. For example, the price of a standard two-storey house in Boucherville was up five per cent from a year earlier at $210,000, while Westmount prices increased three per cent to $664,479.
Ottawa's housing market experienced "healthy increases" as inventory increased, giving buyers a wider choice, the report said.
Toronto saw significant price hikes but the extremely tight conditions of 2004 have eased. A two-storey home in Leaside rose 6.6 per cent to $650,000, while the price in the Annex went up 13 per cent to $735,000.
Across the city, the average price increase for a two-storey home was 4.7 per cent to $463,738.
Winnipeg's brisk activity persisted, pushing double-digit price increases year-over-year, as demand continues to outweigh the housing stock. In North Kildonan, a two-storey went up 10.5 per cent to $169,000.
Although Regina and Saskatoon saw all housing types rise substantially in price, strong consumer confidence continued to draw buyers, the report said.
Demand was also hot in Calgary's core, as the vigorous Alberta economy and an inflow of people pushed prices higher. Two-storey homes in the west part of the city experienced an average price increase of 11 per cent to $267,800. City-wide, the average price jump was 7.6 per cent.
Some house-hunters in Edmonton were frustrated by the lack of homes for sale, and neighbourhoods experienced price increases of between 2.6 and 9.5 per cent for two-storey homes. The average price across the city stood at $203,000.
Buyers in Vancouver and Victoria continued to scour the market despite rainy weather, but price gains moderated somewhat from the first quarter. In Vancouver, the average price of a two-storey house jumped 7.1 per cent year-over-year to $556,833. In Victoria, the increase was 11.4 per cent to $361,000.
In both cities, the report said, "multiple offers remained common as positive in-migration, low interest rates, economic growth and consumer confidence supported vigorous market activity." |
