WINNIPEG HOUSE PRICES CONTINUE TO REMAIN STRONG BUT SOFTEN IN THIRD QUARTER
OF 2010
Influx of newcomers to Canada keeping up demand for Winnipeg homes
WINNIPEG, Oct. 19 /CNW/ - The Royal LePage House Price Survey released today showed strong year-over-year price increases for Winnipeg homes but also revealed signs of a softening market.
"Overall, our market continues to remain strong," said John Froese, broker, Royal LePage Prime Real Estate. "We had a great spring and have done well over the last couple of years during the downturn, but our third quarter results show a slowdown in the market."
In the third quarter, year-over-year house prices rose for all housing types surveyed in Winnipeg. Standard condominiums posted the largest increases, rising 11.7 per cent to $163,857 while detached bungalows were up 9.2 per cent to $263,125. Prices for standard two-storey homes rose 8 per cent year-over-year to $287,188. However, the survey also revealed a slight decline in year-over-year unit sales and an increase in inventory levels—with inventory expected to rise further as 2010 closes out.
"Sales are down slightly and listings are up, yet prices continue to rise year-over-year," said Froese. "It's because Manitoba's booming economy is attracting immigration into both Winnipeg and elsewhere in the province, making the rental market very tight and pushing the first-time home buyer market up. However, Winnipeg is also a very seasonal real estate market, so look for sales to decrease and inventories to rise as we head into the winter months. Having said that, the unseasonably pleasant fall weather we enjoyed helped keep the market strong in the third quarter. "
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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