VICTORIA HOUSE PRICES STABILIZE IN THIRD QUARTER
Sales slowdown that began in the second quarter continues heading into winter market
VICTORIA, Oct. 19 /CNW/ - The Royal LePage House Price Survey released today showed an overall stabilization in prices, with modest year-over-year increases across most property types surveyed in Victoria. While sales activity is down year-over-year and inventory levels are at a 12-year high, unit sales are fairly consistent, though at a slower pace than the same period of 2009.
"There is still concern and lack of confidence among some buyers who feel that the market is in transition," said Carol Geurts, Royal LePage Coast Capital Realty. "People should think of real estate as a long-term investment, especially in Victoria where long-term thinking has served buyers well."
Detached bungalows led the way with year-over-year price gains of 5.4 per cent, selling for an average of $490,000 in the third quarter. Standard condominiums sold for an average of $275,000 - no change from the same quarter last year - while standard two-storey homes rose 4.7 per cent, selling for a third-quarter average of $470,000.
Standard two-storey homes are a popular choice for single family dwellings, as many have revenue-generating suites and are newer in age. Detached bungalows are also popular, but more limited inventory levels are keeping prices up in this category. In comparison, a large selection of standard condominiums is keeping prices for that housing type steady.
"With overall inventory levels at their highest since 1998, buyers have plenty of time to consider their options," said Geurts. "Units are moving though, with a steady level of autumn activity following a very busy market earlier in the year."
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:
Jeremy Twigg
Fleishman-Hillard Canada
604-688-2505
Tammy Gilmer
Director, Public Relations and National Communications
Royal LePage Real Estate Services
416-510-5783
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