Royal LePage may have just burst the bubble of Canadian real estate pessimists. Their House Price Survey and Market Survey Forecast for the second quarter of 2013 doesn’t show any signs of a precipitous drop in home values.
According to the newly released report, average home prices in Canada rose between 1.2 per cent and 2.7 per cent in the second quarter of 2013 from the same time in 2012, and markets across the country are continuing to post gains.
“Those hoping their predictions of a bursting bubble and cataclysmic drops in home values will come true are out of luck again,” said Phil Soper, president and chief executive of Royal LePage, in the news release.
“Price appreciation in most markets across the country has been well below the long-term average for Canada and will remain so through to the end of the year. We expect to see the number of homes trading hands to begin to rise slightly on a year-over-year basis in the second half of 2013, with price softness continuing until mid-2014, at which point we’ll see an emergence from the current cycle.”
In the second quarter, standard two-storey homes and detached bungalows showed a year-over-year average price increase of 2.7 per cent to $419,614 and $386,547. Condos showed a more modest increase during the same time, rising 1.2 per cent to $248,750.
In the Maritimes, strong construction sales contributed to price increases in the Halifax housing market. Standard condominiums posted the highest gains year-over-year with a 5.1 per cent growth to $215,950. Standard two-storey home prices weren’t far behind with a 5.0 per cent bump. St.John’s saw a significant growth in housing prices with inventory shortages in some markets. Condominiums experienced the largest increase rising by 7.5 per cent to $309,333.
Moderate growth was seen in Montreal’s housing prices due to an increase in the number of first-time buyers. The price of detached bungalows rose by 2.7 per cent year-over-year, while standard homes grew in price by 3.3 per cent. Condo prices were pretty well flat, rising only 1.6 per cent year-over-year.
House prices in Ottawa remained relatively flat year-over-year, largely due to higher inventory and more selection for buyers in the market.
Low interest rates and low inventory caused modest gains in Toronto’s housing market. Detached bungalow prices rose by 3.1 per cent year-over-year to $577,495 while standard two-storey homes saw a gain of 2.2 per cent to $683,241. Standard condo prices remained flat increasing by 0.7 per cent to $366,189.
Winnipeg saw steady gains especially among in-demand condos, which saw a 4.4 per cent bump in prcies to $198,431. Detached bungalows stayed level, only rising by 0.6 per cent to $305,010, while two-storey home prices lept by 7.1 per cent to $344,598. Overall, the average price of a home in the city is expected rise by 3.9 per cent by the end of the year.
Regina saw flat prices since the boom in condo construction kept condo prices down. Still, demand was up among bungalows and two-storey houses, which saw increases of 3 and 4.5 per cent respectively.
The Calgary market continued to soar with bungalows seeing a 5.9 per cent rise, two-storey homes climbing up 6.7 per cent year-over-year and condo prices increasing by 6 per cent. By the end of 2013, the price of a home in Cowtown is expected to grow by 6.5 per cent.
Edmonton’s detached bungalows saw a 5.9 per cent year-over-year boost in prices while its two-storey home values rose by 2.2 per cent. Condos saw a more modest increase of 1.9 per cent to $204,755. Prices are expected to continue to rise by 1.6 per cent by end of year.
Vancouver recorded a number of decreases. Detached bungalow prices dropped 3.2 per cent year-over-year to $1,052,500, and two-storey homes fell by 2.3 per cent to $1,151,250. Condominium prices also saw a decline of 3.3 per cent to $490,475. Despite these decreases, the average price of a Vancouver home is expected to increase by 2 per cent by the end of 2013.
For the full details, check out the tables below…