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Third Quarter Housing Forcast

 

Royal LePage says home prices remained unexpectedly resilient across Canada's housing market in the third quarter, but the overall strength is concealing signs of moderation in some regions.

In its House Price Survey and Market Survey Forecast, Royal LePage says that Canada's residential real estate market benefited from very low interest rates and a relatively stable domestic economy.

The national average price of a detached bungalow rose the most — 7.8 per cent year-over-year to $349,974.

However, prices varied widely depending on the local market. For instance, detached bungalows in Vancouver had an average price of about $1-million — nearly three times the national average.

The Canadian national price of a standard two-storey detached home rose 7.7 per cent to $388,218 and the price of a standard condominium 5.7 per cent to $239,300.

 

In Toronto, prices were up for all housing types surveyed. The average price for detached bungalows was $518,433, up 9.4 per cent from a year earlier. Standard two-storey homes were up 7.6 per cent from a year earlier to $620,862.

 “The strength in Canada's national housing market conceals signs of predictable softening in some regions,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services.

“The third quarter saw a return to a normal seasonal business cycle as price appreciation slowed in many areas — with some average values even falling slightly — after the busy spring trading season.”

“A broader slowdown is expected in the months ahead but fears of a US-style correction are completely unfounded,” he added

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