Royal LePage Expects Slower Market
The residential sector will slow down in the second half of 2010 thanks to "front-loaded" sales in the first half of the year.
The Royal LePage House Price Survey and Market Survey Forecast, released today, predicts that, by the end of 2010, home appreciation will average almost seven per cent year-over-year and home sales will increase by just over one per cent.
"We have seen an unusual pattern of activity in the housing market over the past 12 months, with the market experiencing a surge of activity and price increases that peaked in the fall of 2009 rather than spring," said Royal LePage president Phil Soper. "An expected increase in the supply of homes on the market will now bring stabilization in prices and, in some cities, we will see both prices and unit sales decline towards the end of the year. This should not be interpreted as a severe correction but rather a natural reaction to the market having peaked quite early this year."
According to Soper, home prices will stay consistent or decline negligibly in most of Canada with the exception of energy-producing markets like Alberta.
Home prices in Vancouver were up by an average of 17.8 per cent year-over-year while, in Toronto, prices rose by an average of 9.5 per cent. St. John's, NL also posted sharp increases with prices up an average of 19 per cent.
In the second quarter, the average price of a detached bungalow reached $331, 868, up 9 per cent from last year. Standard two-storey homes rose 8.7 per cent to $367, 835. Standard condominiums averaged just over $230,000, up over 7 per cent from 2009.