Regina posts strong year-over-year price increases in fourth quarter

Strong demand and low inventory levels fuel seller's market

REGINA, Jan. 8, 2013 /CNW/ - The Royal LePage House Price Survey and Market Survey Forecast released today showed substantial, year-over-year price gains in Regina, while modest price increases are expected to take place in 2013.

Standard two-story homes in Regina saw Canada's largest year-over-year price increase, rising 16.8 per cent to $382,500. Detached bungalows showed a healthy year-over-year price increase of 5.3 per cent, averaging $333,330, while standard condominiums made gains of 5.9 per cent to an average price of $210,750.

"Strong demand and low inventory levels are putting upward pricing pressure on all housing types, creating ideal market conditions for sellers," said Mike Duggleby, broker and owner of Royal LePage Regina Realty. "In Regina, sales for standard two-storey homes saw the largest price increase in the fourth quarter of 2012 owing in part to a sales increase of higher-end properties."

Duggleby explained that despite lower than average inventory levels, market activity in the region has not slowed down, and is especially active across entry-level properties priced between $250,000 and $350,000.

"Demand for all property types remains steady and is expected to continue this way throughout 2013. Although year-over-year inventory levels are down, buyers are still actively looking for properties. We are seeing many buyers settle for homes that don't meet all of their wish list criteria in order to get into the market," noted Duggleby.

Royal LePage forecasts that the average home price in Regina will increase 4.0 per cent in 2013. Unit sales for 2013 are forecast to decrease by 3.8 per cent over 2012 levels as a result of low inventory.

Nationally, the average price of a home increased year-over-year between 2.0 and 4.0 per cent in the fourth quarter of 2012. In the fourth quarter, standard two-storey homes rose 4.0 per cent year-over-year to $390,444, while detached bungalows increased 3.6 per cent to $356,790. National average prices for standard condominiums increased 2.0 per cent to $239,374.

As home sales volumes slowed in the second half of 2012, the average Canadian house price, for the most part, held firm. Some consumers delayed their entry into the market during 2012, faced with economic uncertainty as governments in both the U.S. and Europe struggled with debt management plans and as homes in some regions became less affordable. Compared to 2012, fewer homes are expected to trade hands in the first half of 2013, which should slow the pace at which home prices are rising.

Phil Soper, president and chief executive, Royal LePage, noted that the housing market is well into a cyclical correction and that fears of a sharp or drawn out collapse are unwarranted. Home prices have risen faster than salaries and wages for three years and the market requires time to adjust. By the end of 2013, Royal LePage expects the average national home price to be 1.0 per cent higher compared to 2012.

"A helpful comparison is to reflect on the beginning of 2009 when the country was in the grips of a very grim global recession," said Soper. "It was a bleak time, with plunging consumer confidence driven by rapidly spreading unemployment. The meltdown of the American banking and finance sector had sent their housing market into a downward spiral and our own real estate market saw home sale transactions fall dramatically. Price appreciation in Canada ground to a halt, but home values dropped only slightly. With economic fundamentals such as employment levels improving, we expect this cyclical correction to be short-lived."

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 Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the fourth quarter 2012. A printable version of the fourth quarter 2012 survey will be available online on February 6, 2013.

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 14,000 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 & 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 symbolTSX: BRE.

For more information, visit www.royallepage.ca.

SOURCE: Royal LePage Real Estate Services

James Thayer
Fleishman-Hillard Canada
416-645-3660
[email protected]

Tammy Gilmer
Director, Global Communications & Public Relations
Royal LePage Real Estate Services
416-510-5783