Photo: James Bombales
The second quarter of 2018 saw home price appreciation slow across Canada, according to Royal LePage’s House Price Survey, released today.
Yet despite the national deceleration in prices, several Ontario cities outside of the GTA saw significant year-over-year price gains.
For a closer look at the rising prices, Livabl spoke to several industry experts who gave their take on which markets to watch in the coming months.
The aggregate price of a home in Hamilton grew 6.1 per cent year-over-year to $541,778 last quarter, according to Royal LePage.
The median price of a two-storey home jumped 5.9 per cent year-over-year to $571,330, while the price of a bungalow and the price of a condo rose 7.6 per cent and 0.8 per cent, respectively.
“We’re seeing buyers drawn to our detached homes, which are 20 per cent cheaper than the national average,” Hamilton-based Royal LePage broker Mike Heddle tells Livabl.
Heddle says that increased migration to the Greater Golden Horseshoe area and a surge of Millennial interest in Hamilton’s relatively affordable homes are two key factors behind the city’s price growth.
“Millennials are getting into a buying stage, and they represent a key portion of our buyer market,” he says.
Meanwhile, the aggregate price of a home across the Kitchener/Waterloo/Cambridge region rose a 8.2 per cent year-over-year to $485,946 last quarter.
“When we saw the big surge in prices in the spring of 2017, that didn’t affect this region as much as it did the GTA,” Royal LePage Grand Valley Realty owner Keith Church tells Livabl. “When prices adjusted, we didn’t see as much of an impact, because prices hadn’t gone up as much to begin with.”
The median price of a two-storey home increased 8.9 per cent year-over-year to $515,733, while the median price of a bungalow and a condo rose 6.2 per cent and 5.1 per cent, respectively.
“We’re seeing a lot of people coming here who are priced out of the GTA market,” says Church. “A lot of older people looking to downsize, or younger people looking for affordable homeownership options.”
Finally, the aggregate home price in Ottawa grew 3.3 per cent to $439,313 last quarter, boosted by its two-storey home market, which saw a 7.4 per cent year-over-year increase to $443,000.
“During the quarter, Ottawa’s affordable home prices and healthy job market continued to drive many millennial purchasers from Toronto into the region in search of property,” reads the Royal LePage survey. “This trend was intensified by the city’s booming technology sector, which brought even more market entrants into the region and strained supply further.”
“Really, the increase in prices started in the fall of 2017, when we saw supply start to drop,” Ottawa-based Royal LePage broker Adam Mills tells Livabl. “We have strong local demand, and people from other pockets of Canada who are realizing that for a major city our property is undervalued.”
Mills predicts that prices will continue to rise in the next quarter, albeit at a slower pace.
“We’re expecting a 2.2 per cent increase,” he says. “I would expect it’s going to continue to pick up in a fairly moderate fashion — not a 6 or 8 per cent growth.”