EDMONTON HOUSE PRICES STABILIZE IN THE THIRD QUARTER ACCORDING TO ROYAL
LEPAGE SURVEY
Year-over-year prices up for bungalows and two-storey homes, down for condos as balance returns to real estate market
EDMONTON, Oct. 19 /CNW/ - The Royal LePage House Price Survey released today showed most year-over-year house prices in Edmonton rose slightly as the market continues to become more balanced after much volatility in 2008 and 2009. Standard condominiums were the only housing type to see year-over-year prices decline according to Royal LePage.
"For most housing types, prices have increased slightly from where they were a year ago, "said Ken Shearer, broker, Royal LePage Noralta Real Estate Inc. "However, we are currently witnessing a leveling off of prices after the quick recovery that began in 2009 and continued through until the spring of this year. To put it in simple terms: prices fell last year, rose quickly through spring and summer of 2010, then dropped back down."
At the end of the third quarter, the Edmonton housing market reported slight year-over-year price increases for almost all housing types. Detached bungalows saw a 0.9 per cent increase in price to $311,429 with standard two-storey homes rising 3.4 per cent to $338,571. Standard condominiums were the only exception to the increase; declining 3.6 per cent to $204,167. The survey also revealed a decline in year-over-year unit sales and an increase in inventory levels compared to the same time last year.
"It has been an interesting year for the Edmonton market," said Shearer. "Nevertheless, we expect things to slow down and settle out as we approach the end of 2010."
Nationally, Canada's residential real estate market saw year-over-year growth in the third quarter as fears of a double dip recession or a housing bubble faded. House price appreciation slowed to a more modest five per cent in the quarter, which is historically typical of balanced real estate markets.
"Most Canadian housing markets cooled in the third quarter. In fact, the year is unfolding much as we predicted, with the unusually active first half of 2010 giving way to slower markets in the later part of the year. Helped by very low rates in a competitive mortgage financing market, the third quarter was slightly stronger than anticipated, on new demand fuelled by improved affordability in many regions," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. Looking ahead, it is very unlikely that the period from now to year-end can keep pace with the activity levels posted in the overheated market of the final quarter of 2009."
In the third quarter, the average price of a detached bungalow in Canada was up 4.6 percent to $324,531, compared to a year ago. Over the same period, standard two-storey homes rose 4.4 percent to $360,329 while standard condominiums rose 3.9 percent to $226,481.
"House price growth now sits just below the long term annual average of approximately five per cent, but once this is adjusted for inflation, which is very low and expected to continue to be that way for some time, appreciation is right on track. Canadian homeowners will be pleased," said Soper.
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 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the third quarter. A printable version of the third quarter 2010 survey will be available online on November 5th, 2010.
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. Historical data is available for some areas back to the early 1970s.
About Royal LePage
Royal LePage is Canada's leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage is the only Canadian real estate company to have its own charitable foundation; the Shelter Foundation which is dedicated exclusively to funding women's shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Real Living, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol "BRE.UN."
For more information visit www.royallepage.ca.
For further information:
Jacque Benson
Fleishman-Hillard Canada
403-266-4710 ext. 227
Tammy Gilmer
Director, Public Relations and National Communications
Royal LePage Real Estate Services
416-510-5783
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