Real estate market steady: Royal LePage
Canada’s real estate market is returning to normal with a year-over-year average price increase of less than five per cent, according to a Royal LePage survey released Tuesday October 19.
The survey suggests house price appreciation slowed in the third quarter to a rate historically typical of balanced property markets.
“Most Canadian housing markets cooled in the third quarter,” Phil Soper, president and CEO at Royal LePage Real Estate Services, said in the report. “In fact, the year is unfolding much as we predicted with the unusually active first half of 2010 giving way to slower markets in the later part of the year.”
Soper said the third quarter was slightly stronger than anticipated, helped by the low rates in a competitive mortgage financing market and new demand fuelled by improved affordability in many regions.
“House price growth now sits just below the long-term annual average of approximately five per cent,” added Soper. “But once this is adjusted for inflation, which is very low and expected to continue to be that way for some time, appreciation is right on track. Canadian homeowners will be pleased.”
St. John’s, Winnipeg, Montreal and Vancouver posted price increases above the national average, with St. John’s rising between 12.3 per cent and 14 per cent depending on housing type, while Winnipeg had increases of between eight and 11.7 per cent year-over-year. Prices in both cities were fuelled by a population influx.