Prices are flat, but interest rates are low and the economy is likely improving (though when is anyone’s guess). According to the Royal LePage’s latest House Price Survey this “unprecedented combination” has led to a unique landscape for home values in the first quarter of 2013.
During this period, the average price of a home in Canada increased between 1.2 per cent and 2.4 per cent from 2012, depending on the property type.
Condos represented the lower end of the range, increasing by 1.2 per cent. The national average price of a standard two-storey home went up by 2.2 per cent, compared to the first quarter of 2012. Bungalows showed the highest bump, rising in value by 2.4 per cent.
“2013 finds the Canadian housing industry in a highly unusual place. The combination of very low mortgage rates and flat home prices, against a background of general economic improvement across the nation, is not something we’ve seen before,” said Phil Soper, president and chief executive of Royal LePage.
“Typically one of these variables is moving hard in an opposite direction. While some have spoken loudly about impending market volatility and dramatic downward pressure on home prices, we are simply not seeing evidence of this. The current environment is very supportive for housing. Those waiting for big declines in home prices will likely be disappointed.”
Of course the story is not the same across the country. Check out how major urban markets are faring below…
- The Maritime city saw price gains regardless of housing type. Again, detached bungalows performed the best increasing 7.8 per cent year-over-year to $294,667.
- Newfoundland’s capital posted the highest average price gains in Canada, with two-storey homes rising 10.6 per cent. The boom was largely fueled by move-up and executive buyers moving into pricier homes.
- Prices within the city plateaued with two-storey homes representing the biggest increase, rising by 1.4 per cent to an average price of $392,929. Condos experienced the smallest rise of 0.4 per cent to $240,044.
- There was little movement to report in the nation’s capital. Condos saw the biggest gains, posting a 1.9 per cent grain. However, unit inventory for this housing category shot up 41 per cent compared to last year.
- The country’s largest city saw moderate growth, with two-storey homes rising to $671,252 for a 4 per cent increase. Bungalows weren’t far behind, increasing by 3.9 per cent to $565,700. The much-talked about condo market saw a small gain of 1.8 per cent for a total average of $359,671 for the first quarter.
- A strong performer, bungalows represented the largest increase in the city, moving up of 6.9 per cent to $302,896. Multiple offers and bidding wars were common situations with an impressive 35 per cent of listings selling above asking price.
- The prairie city’s market was buoyed by an influx of first-time buyers. Of all the housing types, two-storey houses performed best, increasing by 12.7 per cent year-over-year to an average price of $337,000.
- Thanks to low inventory, Calgary saw prices rise between 5.1 to 6.8 per cent for housing types surveyed. Though condos saw the smallest bump, they were the most active category.
- Bungalows posted the biggest price increase, rising by 1.7 per cent to $329,679, while two-storey homes followed with a relatively flat 0.7 per cent increase to $357,109. Condos posted the only decrease, a very small 0.2 per cent decline to $202,838.
- With a reduction in activity from both buyers and sellers, prices were down across the board, ranging from 5.1 per cent (bungalows) to 5.6 per cent (condos and two-storey detached homes).
- The BC city saw prices also declined cross the board. Condos fell by 7 per cent to $267,000, two-storey homes decreased by 1.5 per cent to $452,115 and bungalows dropped by 3.8 per cent to 452,140.
To see how each of the cities breaks down, see the chart below…