Victoria house prices continue to climb in first quarter

- Market improvement in the second half of 2009 continues in 2010 -

VICTORIA, April 8 /CNW/ - Prices for all housing types in Victoria continue to increase, following a strong first quarter. According to the latest Royal LePage House Price Survey, unit sales for the first quarter are up 54 per cent year-over-year, suggesting buyer confidence has returned to the market.

"The large gains began late last year and have continued into the first quarter," said Carol Geurts, Owner of Royal LePage Coast Capital Realty. "Homes are selling for 98 per cent of the asking price. Bungalows are the most affordable single family homes, so they attract the most interest."

At an average price of $295,000, standard condominiums led the way with year-over-year price gains of 13.5 per cent. Detached bungalows increased 12.9 per cent to $511,400, and standard two-storey houses increased 9.2 per cent to $475,000.

Sales volume is also up year-over-year. Victoria had 621 sales in February 2010, compared to 403 sales in February 2009. "The beginning of last year was dismal for our market in terms of unit sales," says Geurts, "so things had nowhere to go but up. Plus Victoria is a popular destination for immigration, so we expect the market to continue to be strong."

"Victoria home prices under $600,000 are generating multiple offers - particularly for properties offering rental suites. Buyers concerned about soon-to-be tighter mortgage rules want to make a purchase before the new guidelines take effect in later this month," Geurts said.

In comparison, the national average price of a detached bungalow in Canada rose 11 per cent to $329,209 in the first quarter year-over-year, while standard two-storey homes rose 10.3 per cent to $365,141 and standard condominiums increased 10.9 per cent to $228,963.

"National averages from our first quarter report are not particularly useful in painting a picture of the country's neighbourhood real estate stories. House sale data from the past two year period shows tremendous variances in terms of how different cities reacted to the recession," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. "In Vancouver and Toronto, for instance, the dramatic unit sales fluctuations exhibit a significant degree of market irrationality: inordinately fearful when faced with poorer markets; and overly enthusiastic when the tables turned. Montreal is an example of a city where the market has been much more stable and homeowners there seem quite happy with the relatively slow pace of change."

In addition to strong price appreciation in the first quarter of 2010, the volume of sales in Canada also increased year-over-year as pent-up demand from constrained supply of homes for sale in 2009, coupled with unseasonably warm weather, prompted a spike in home sales in the country's largest housing markets from January through March.

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 first quarter. A printable version of the first quarter 2010 survey will be available online on May 7th, 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: Jeremy Twigg, Fleishman-Hillard, [phone]; Tammy Gilmer, Director, Public Relations and National Communications, Royal LePage Real Estate Services, [phone]