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Royal LePage believes the Canadian housing market is having a Goldilocks moment: in the third quarter, price growth for existing homes was not too hot and not too cold in most regions.
“We are now experiencing a natural slowing in the rate of year-over-year price appreciation, with real estate markets moderating in most parts of the country,” said Phil Soper, president and chief executive of Royal LePage, in the news release.
“To be clear, we expect home prices to continue to grow in the months ahead, but at a slower rate than we have seen in recent years.”
According to the report, the average price of a home rose between 4.4 per cent and 6.1 per cent over the same quarter last year.
Detached bungalows saw the highest increase, rising 6.1 per cent to a country-wide average of $405,101. Standard two-storey homes followed with a 5.5 per cent increase to $441,714 and condos, which averaged in at $257,377, recorded a 4.4 per cent boost over last year.
But some parts of the country aren’t showing any signs of cooling down.
Calgary saw strong demand for every housing type with the average price for standard condos jumping 11.8 per cent year-over-year to $294,156. Close behind, prices for detached bungalows rose 10.8 per cent to $515,844 and standard two-storey home surged 9.2 per cent to $499,811.
Further east, the Toronto market showed no signs of chillier temperatures. Low levels of inventory and a surprisingly busy August led to big increases regardless of property type. Condos rose the most, with standard suites witnessing an 8 per cent boost year-over-year to an average of $383,039. Standard two-storey homes saw prices rise 7.6 per cent to $733,317 and detached bungalows measured a 7.2 per cent bump to $618,088.
Here’s how some of the other major cities fared:
- Detached bungalows in Montreal measured a 2.6 per cent boost to $296,857. However, standard two-storey homes and condos plateaued rising 0.2 per cent to $403,714 and 0.5 per cent to $241,000, respectively.
- Ottawa had a a surplus of inventory in the third quarter, which led to sluggish price growth. Detached bungalow and standard two-storey home prices both increased by 1.2 per cent to $403,091 and $406,264, respectively. Standard condos saw prices drop by 0.3 per cent to $258,132.
- Typical of the booming Alberta economy, Edmonton witnessed strong price growth as well. Detached bungalow prices rose 6 per cent year-over-year to $357,240, followed closely by condos, which recorded a 5.8 per cent increase to $232,340. Standard two-storey home prices also increased by 5.3 per cent to $379,463.
- Did Canada’s most expensive city get even more expensive? In Vancouver, detached bungalow saw the most growth with a 6.1 per cent boost to $1,135,009. Standard two-storey homes also saw substantial growth with a 5.6 per cent increase to $1,220,909. Condos were the only housing type to cool, with pricing decreasing 0.2 per cent, year-over-year to $502,869.