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Canada's housing market both vigorous and stable . Y6 |6 ]2 z1 Z6 L# w9 a* t% G
% [2 q+ _. @7 ^5 x3 q
- Country's market poised to show growth throughout 2006 -$ c" n4 x3 T* }0 t% Q; c
8 H2 b7 W( E/ R1 a8 G
TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market+ B$ p9 V, t7 i3 o
exhibited moderate price increases and stable unit sales during the third6 ]/ A0 b1 ~9 ?2 P0 L
quarter. Wide regional variances continued to be the dominant characteristic+ v. o! h y0 X, y
in the market, exemplified by frenzied levels of activity and double digit& a# A* k, q! M1 @4 m7 l5 Q
price gains observed in the energy and commodity rich Western provinces, and9 ]- o: ^. J6 A# q3 I9 W
more reasonable sales volumes and moderate price appreciation in Ontario,
. t1 D& k7 i8 bQuebec and Atlantic Canada, according to a report released today by Royal
) h$ J0 W& \8 f# M9 rLePage Real Estate Services.
) U: N& a: F. w# x' U Z; P A* }& J$ Z5 o8 L4 y+ M
Nationally, market trends established through the first three quarters5 e! w0 g0 q" i' _, B
are forecast to continue for the remainder of the year. Robust economic9 N1 ?1 d1 z9 F7 a5 C
conditions, low unemployment rates, modestly growing salaries and wages, and* h, V, }4 ]7 c T: k! G2 D0 H: e
sound consumer confidence contributed to the overall strength of the
; s0 U+ \! j; X1 v8 ^# jresidential real estate sector.
+ Y* B: C1 @2 l3 [/ g3 M9 T$ h1 a0 _6 \
Of the housing types surveyed, the highest average price appreciation
9 ]$ I X0 c# o2 `3 P- O* Poccurred in detached bungalows, which rose to $300,365 (+16.3%)
( w* e! N/ h- f7 N- }' \+ Q( Dyear-over-year, followed by standard condominiums, which rose to $211,562' o& J- k" Q! h9 s! [1 o7 Y
(+14.2%), and standard two-storey properties, which increased to $365,380+ e) K* z9 Y, ~1 E
(+13.2%).1 c8 `/ D* U- ~+ }
. q: y3 P T V5 h/ |. Q( N% y "Canada's sturdy housing market continued to demonstrate steady growth
% m9 s6 Y& i$ o2 P( Hduring the third quarter. For all but the west, we have moved on from the2 x: U: }; }+ d' `3 p
frenzied expansion that characterized the first half of this decade, and are
8 o6 @, }# j- xpoised to show continued growth at a more moderate pace," said Phil Soper,
) @1 B( B% V+ Q! t% h: L; R p6 Tpresident and chief executive officer, Royal LePage Real Estate Services.
Y$ I; s. w) g"Gone is the sellers' market that we have lived with for some years. We+ p- {9 c$ s4 T# g5 l
welcome the more reliable conditions that are characteristic of a healthy8 C B9 H O) s# o" s( c
balanced market."2 w7 B7 L$ D& d) r9 Q
/ o/ A4 D8 i2 ]. F
Despite the double-digit rise in average national house prices,; ?% E1 L3 V$ D7 b0 u: Q. Y) Z# I
considerable regional variances were exhibited again this quarter. The shift
" k4 ~4 i6 i1 B7 X* Gto balanced market conditions, which began in late 2005, has continued6 n6 v+ @+ O- v! r' Q/ R
throughout most of the Central and Eastern regions of the country. In the core5 O# S. w, U. J& g9 P% p6 C
energy producing western provinces, the combination of very high in-migration,9 n$ X2 g( E- h+ z) A& x2 a
manageable affordability, and a shortage of inventory has driven record0 b; Y; L3 V# ]7 b$ x; K3 X
breaking price appreciations.* H9 O( d8 k' F( d9 ~! U w5 w8 f
# B: x: h# s3 F! T& |$ @ Echoing the second quarter and supported by Alberta's rapidly expanding
( U1 B/ R m) Teconomy, Calgary and Edmonton led the charge of Canadian cities with the
1 S( l L: `7 o0 W* S4 ]largest house price appreciation in all housing types surveyed.
6 E$ q# C0 A! s/ g2 r3 E1 Y& ]2 ~6 R
In Ottawa and Toronto, growth remained steady, supported by solid
# V) ?& q: h4 o4 Xeconomic fundamentals, an increase in available inventory and strong consumer
0 W9 ]' F/ ?9 o: a1 K. Bconfidence. While the pace of price appreciation in Ontario leveled off' w9 O8 |+ O: y- K1 d/ M% [9 ]- U
slightly, the province's real estate market remains poised for modest growth.& }3 E! z; s6 l' p, o
In Atlantic Canada, new housing and condominium construction offered buyers! a' R$ A8 b% O/ l3 [
greater selection at more competitive prices, resulting in a slower rate of( w( ~$ ^, r; k% e
price appreciation when compared with 2005.5 ?& @4 k0 V/ C) a3 A
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While the pace of growth in Canada has slowed, the domestic housing
+ ?1 J: r+ R# o: D+ lmarket is expected to outperform the American market. The economic and
/ d2 \9 f2 p6 m! m- D8 Y' O4 Ofinancial fundamentals driving the residential real estate sector in Canada. m- v+ T; w5 m* a# T6 Y e
are markedly different than those found in the United States.4 C( C( N% u4 P% w- N% s( q
- r% t# b l* \! r' z9 l7 b
Added Soper: "Canada's housing market is likely to outperform the& u7 `8 _ \* n; x; Q" k
American market through 2007. A number of factors are working in Canada's) V- ~* O% g/ w
favour, including healthy personal and governmental debt levels, the
# ~+ t5 l, x( [8 U$ {relatively modest rise in interest rates in our country, and general3 Y8 I/ r+ T) F6 T" b
affordability in our major cities. In addition, Americans are now seeing the6 H0 y1 R0 N @
downside of a tax system that encourages maximum homeowner leverage, and
( d+ X H& @7 r2 W* j1 x; j+ Waggressive financial products such as zero- and negative-amortization* J6 M: O" E: h" e/ |1 z
mortgages that work only in a high price growth environment."
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$ X$ i0 }( R' V2 t4 G <<" d8 ~2 j8 `" x* H' X$ }
REGIONAL SUMMARIES. s/ P: i% S/ W% B/ L
>>3 p) S) r( E" E
; R" @1 Z# p% t# l$ B8 {5 N Balanced conditions continued to characterize the housing market in- W7 [! J, @; d9 f! Q7 R# M7 y
Halifax, as significantly higher inventory levels helped to moderate the rate7 h( C4 @6 I2 w/ o6 o
of price appreciation. Buyers were increasingly choosy, taking more time
% D0 V) S4 A5 o/ {- [looking for newer, low-maintenance properties that were not in need of" B' h; ]$ r: T5 Y+ S
renovations.
8 Q2 t3 C8 o7 ^, @. s. j9 b: u N- z/ l0 z4 D& P! n% L
The housing market in Moncton remained healthy and strong as a slight, R& q3 J! O) n" F: \
increase in inventory helped to moderate the rate of price appreciation2 ~' w, Q4 `+ G- U* J# v0 K9 F
compared to the same period in 2005. Activity was brisk throughout August and
& r7 ^ ]! \4 d# ?September and is expected to remain this way through the fourth quarter.) j/ ^+ Y, _! h6 i9 d" w
; R6 ?8 v- F) `+ r) @ \% R The housing market in Saint John underwent its traditional summer
* j; K8 G0 r; D) L3 n& Qslowdown in the third quarter, with activity picking up towards the end of the
k; m/ n. Y7 g$ J( equarter. The local economy continued to thrive, as construction on a new
0 v% a+ o T3 ^& a: h" o600,000 square-foot shopping area has begun, bringing several new box stores( f# q) t/ n8 T! ^* E2 ?
to the area. Buyers have begun seeking less expensive fixtures for their homes; U I6 g" O! e( w4 t3 e t8 l
and are instead opting for more affordable housing options.
# g' j" I; J& U R
1 w9 {; ]4 d p0 g* m+ } c8 g% M In Charlottetown, the housing market started to move towards balanced6 R8 a: A- Q! F% X. O( ?! e" ~: D
conditions, as some sellers had to begin to lower the asking prices on their: U4 e) y9 W" K' E3 |- M3 C+ v- [
homes to make them more competitive. Activity from out-of-town and US buyers8 J7 J, j* g! v _$ i. ]- C
was down slightly compared to 2005, likely attributable to the strong Canadian
5 U, z# q- |3 Adollar. Inventory levels began to creep up in the third quarter, providing
1 |6 i2 O, M4 w% qbuyers with more options when looking for a home.. M5 I4 P/ n5 u5 }6 H3 n
1 F6 @6 n; D' C9 F) r
Activity in St. John's slowed slightly in the third quarter, particularly; M$ j: }/ {6 V. n T, B3 W0 o4 p8 \
among higher-priced properties, where there was a slight over-supply of homes1 |) K( G( J& c7 c6 V4 z! M
priced over $200,000. Listing periods have increased when compared with 2005,
) g7 z% }* T+ M, u4 y( V# o, @& ?# Vas some of the pent-up demand that had characterized the market over the last* ~+ {% F7 x5 N6 u+ M
few years has been satisfied, resulting in more normal, balanced conditions.) k! c5 k0 \0 {2 w& r
G) c r: w9 ?7 Y
Montreal's housing market recorded modest increases in average house) ?" y' A- i8 g& ]3 v+ i6 l
prices, due to a slight seasonal slowdown in the third quarter as inventory
9 [! {$ r( k- q5 p6 Ylevels rose. Part of this can be attributed to the fact that many renting$ {# K6 ?4 x; ^ n/ J
first-time buyers were motivated to close on the purchase of a home by July 1,
$ K3 i7 `/ F c9 X9 a' y: _when rental leases expire in Quebec. Once this date has passed some of the( \6 w, ` U6 A* B% i0 L4 p/ f
pressure is taken off the market, allowing buyers to visit more homes before# t# [. X7 ]7 [! W V1 a, {8 b
making a purchase.
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Ottawa held its position as one of the country's most stable housing' t/ r$ t+ h* s$ x) k6 n
markets in the third quarter, reinforced by a vibrant local economy and strong
" [+ \, Z- e+ R/ ], rconfidence, resulting in modest increases in average house prices. The city+ l# S0 f. h' ~7 x
centre remained a bright spot in Ottawa, with homes in this area attracting' N; B* B1 B- z6 y: S Q h J5 p: j
attention due to their convenient location and proximity to downtown) @( E/ ?! j1 O# f8 b; E
amenities.
1 a% _4 `( r# v3 B- |+ o6 A7 Z- u( h9 f' p0 o. A& w
The housing market in Toronto sustained healthy activity levels
$ ~# C( @9 ?! m$ }( u5 z" fthroughout the third quarter, as a strong economy helped to maintain demand
3 K, F' ^( S2 q( ]0 ]/ Tacross the city, causing average house prices to rise moderately. Toronto has k2 }; m5 x' C$ l# Y- @
continued to experience modest growth in average house prices, and has been+ [* s% M; U" }: l+ P. x( x# r
driven primarily by purchasers who are buying homes as their principle" m7 `3 k5 [: T% j9 r1 h) F
residence, rather than for investment.' F; a7 K* w) R
$ R% z: a, H+ z! s& d/ D
The vibrant Winnipeg housing market continued to show its strength as
4 a4 F u, `0 ?- Q n: _2 \house prices rose during the third quarter. The booming local economy resulted
6 C" P1 x& X/ O# v" }in a historically low unemployment rate, helping to bolster consumer' H5 y, [8 n# G! @4 Q9 z2 n8 ?
confidence and Winnipeg's ranking as the city with the lowest capitalization
) ?+ X9 {) @! S* q( u) k; c( Hrate among the country's larger cities - helped to encourage buyers to enter
& o7 ~8 [. s; o3 h5 x3 T" {the market.
9 {$ `% t4 b5 `4 [0 V2 }( L5 ?1 n" c& s
In Regina, the market experienced a slight seasonal slowdown through) l5 B* |9 i/ [9 [( x# U. O
July, as there were fewer purchasers in the market due to summer vacations. In' A8 x; J5 t' r
August, activity resumed to the busy pace previously seen in the spring
- b0 B1 f! k- {months, as the influx of purchasers made it more difficult to find a home due |0 B% T9 n+ q$ r8 N m+ Y$ d
to the shortage of available inventory.
& S: R2 j9 P0 f& V4 ^
2 ~! R9 d* j _# E Activity in Saskatoon remained brisk as the market maintained its
" m) A( F$ V9 [momentum from the busy spring sales period. The economy in Saskatoon remains5 z2 |$ z0 E% H0 w( N! F+ Z
vibrant, as employment opportunities are abundant with many businesses
9 [3 _8 ?1 W% o" f4 ustruggling to make hires and having to recruit outside the province.9 N' n s, Z5 \! ^. J% g S
8 b2 A( ]5 f. |) S' p9 g3 G
Calgary's housing market recorded blazing average house price increases
2 a, ~; i3 M* }+ l# Y8 ain the third quarter, in all surveyed categories. The burgeoning economy, low
0 R% F+ A' n/ x# Z+ D2 bunemployment rates and low inventory levels remained the leading factors that
8 U0 B; k. v+ V8 L fpressured Calgary's house prices upwards. However, regardless of the soaring
4 J1 U L8 M3 Wprices that characterized the market - even during the typically slower summer O# ?( h: G" j5 u5 S
season - it is expected that activity will become slightly more balanced, as- A9 ^: q% y2 C* H
buyers are becoming more reluctant to participate in the frenetic activity.
9 g" R8 J* \7 c& Z* O4 D, r! L9 U P. F! Q4 a" `" J$ s
Edmonton's booming local economy continued to thrive in the third quarter) V, I F' A2 x7 O, b. v0 N8 {
as activity in the oil sands north of the city continued to flourish. Edmonton
1 |9 m7 p+ w6 ^7 Hremained the hub of activity for those coming to work in the oil industry,
& D8 f5 F1 b& S1 Lmaintaining tight inventory levels across the city, resulting in prices% P7 _3 P5 l! H1 [( _
increasing at record levels. However, as inventory levels continued to improve
: P, b! X+ L) @$ oin the third quarter the rate of price appreciation should moderate slightly
+ z' {1 I% D; c+ C. S c! |towards the end of 2006.
1 B& K" U8 C/ p+ U, i* y7 P" p! d6 ]
While Vancouver has seen a slight reprieve from the severe shortage of& m1 X: O; Q0 v2 x4 s) X
inventory that had previously characterized the market, supply is still unable
0 K5 L. N4 e1 h6 s# r1 {to meet demand, driving house prices upwards. Vancouver has a very diverse
3 k2 S1 l6 k. K4 Vgroup of active buyers - from first-time home buyers to baby-boomers to
7 x W8 o* M2 }foreign investors - all of whom fuel the demand for houses, placing added
5 W7 T3 o& B% d: I* @; F' m; {* Epressure on tight inventory levels.& q. Y9 w7 L2 R7 J, L, Q
* o7 P: O9 l& C" R6 G Victoria's market is vibrant and supported by strong economic
) A+ L: |. \6 P% Q8 J5 y* G7 r6 Xfundamentals, fuelled by a booming tech sector and a migration of young people. D& @0 L& W9 G) [6 Z& _) V8 }
into the city that has continued to support the area's house price increases;
L1 T/ D# w2 v fwhile increased inventory levels have afforded buyers more time when searching2 Y8 O6 ` Z' A% n% s: H, s* k
for a home, helping to normalize the market's pace.! g4 ]# h/ ?' c! W' d. k
3 r5 x$ E" t* r$ {8 D: }; Q. z
<<
& H F# \5 `# e( L0 _ Survey of Canadian Average House Prices in the Third Quarter 2006
6 ^4 {( J2 k2 V, i) Q3 l( k8 F' F5 ]0 q/ y4 I) m- C
------------------------------------------------------------------------- F( P$ x* f( b* z
Detached Bungalows Standard Two Storey( f: \% z+ H( m% ]8 S& V6 N. s
-------------------------------------------------------------------------
' Z3 G+ H7 [) P; E 2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q30 Y9 Z0 c7 y' ~. ]3 s- Y" e
Market Average Average % Change Average Average
& l+ |% M) E9 Q9 i- O5 r) Z -------------------------------------------------------------------------
, q7 [! a6 ]8 x) Q Halifax 186,333 173,333 7.5% 198,667 199,0008 A8 ^- d3 O6 z+ _: U! ? O2 {
-------------------------------------------------------------------------( Y) h$ J$ F9 I, G
Charlottetown 145,000 141,000 2.8% 175,000 170,000, [9 z- u; t, J5 S
-------------------------------------------------------------------------
U) v" `8 o( q$ p; V# H( x& z Moncton 135,000 127,000 6.3% 129,000 123,000/ D; L9 [$ y9 \, H( \/ Q$ Z4 |$ G; @
-------------------------------------------------------------------------( [* l8 w. \) ^. B/ V2 E2 E
Saint John 141,200 142,900 -1.2% - -& k5 J0 N' o+ q# T
-------------------------------------------------------------------------) U- X1 ]- ~4 h
St. John's 143,667 142,667 0.7% 200,667 202,333
; N: q0 p1 P8 G7 K& J -------------------------------------------------------------------------, s5 Y4 q) B! D, {
Atlantic 150,240 145,380 3.3% 175,833 173,583
5 t4 H, O* f/ [: d7 r6 Z -------------------------------------------------------------------------" j0 C! x6 n8 D% K i
Montreal 213,691 203,500 5.0% 321,141 316,185
2 U* B* F5 H% w, T. {- o% G -------------------------------------------------------------------------
, X2 G# [, P& k Ottawa 290,083 278,417 4.2% 285,667 273,250
# e$ L9 p J! @ b6 Z4 v -------------------------------------------------------------------------
b6 C1 W/ a" D; j0 L5 E, f( g% z9 ~ Toronto 373,368 355,882 4.9% 481,523 474,766
! @6 O* _2 u! C- E" ?% ^ -------------------------------------------------------------------------
, C5 j2 x3 o/ @& f4 {7 B6 S Winnipeg 181,579 159,860 13.6% 202,337 180,707! y0 X1 J4 r: r
-------------------------------------------------------------------------+ {: T, V `3 o' i
Saskatchewan 170,667 156,083 9.3% 182,600 166,500! m# l. E; q% a8 y
-------------------------------------------------------------------------3 \% ~3 O( A: ]2 n) s$ g! [% y
Calgary 395,067 252,411 56.5% 405,778 264,389
5 o6 C' L+ z/ ]/ i -------------------------------------------------------------------------9 h& Y( Y+ A) f" F9 u4 O# U# F
Edmonton 286,857 194,857 47.2% 316,429 206,714/ t) M5 G& j' b, }
-------------------------------------------------------------------------, d+ [/ N. f1 ~ l8 ?
Vancouver 704,250 601,000 17.2% 794,000 697,5009 W$ L9 J; P$ N4 I* f5 x( C( \
-------------------------------------------------------------------------% ]$ Q: _ N* A- S8 R! F; t1 k" b
Victoria 375,000 348,000 7.8% 403,000 391,000. S) r/ m5 n* m2 y& V9 f# `
-------------------------------------------------------------------------
5 H( B" ~9 i4 }# q' t National 300,365 258,202 16.3% 365,380 322,860) A1 @% m0 k3 ^ L" k
-------------------------------------------------------------------------
9 d4 U# o8 f* l. i# Z. V8 D
! L! c( w3 s0 M9 K -------------------------------------------------------------
1 v9 e$ H0 y" m& H5 [ Standard Condominium" ]+ H* g9 b" I2 N1 o* d9 K0 f
-------------------------------------------------------------
. q/ B5 }6 n4 h& b8 r 2-Storey 2006 Q3 2005 Q3 Condo* J u- p. a- ~) X
Market % Change Average Average % Change8 m( o- }) n5 n( d& s" M
-------------------------------------------------------------
6 x- D; N. k1 I4 Q Halifax -0.2% 142,000 103,000 37.9%
/ \ J a" e! r, A$ o# `9 O -------------------------------------------------------------5 E! o. _; E/ L+ { V$ [
Charlottetown 2.9% 98,000 98,000 0.0%
: N1 [$ p* W7 p7 S9 \ -------------------------------------------------------------2 [- }: N: C4 B( d, h
Moncton 4.9% - - N/A
$ m+ B; ?% K$ ] p* { -------------------------------------------------------------
9 Z o9 t) y3 Z; l Saint John N/A - - N/A
' _ z4 [4 U. I+ @; o -------------------------------------------------------------
& x8 k6 Q6 C9 e$ ~* o9 | St. John's -0.8% 146,333 145,667 0.5%+ y* q$ z2 m& R' z" R- k
-------------------------------------------------------------
5 I, Y- E" D' r8 F Atlantic 1.3% 128,778 115,556 11.4%! Y9 n7 U/ P2 t: j q
-------------------------------------------------------------1 @( u' j5 r7 J
Montreal 1.6% 193,190 188,016 2.8%: b2 ^0 ~& }' r- f! A7 ]; w
-------------------------------------------------------------
* e3 f" Y( C: R7 x2 @5 E' U' G Ottawa 4.5% 181,083 172,250 5.1%- |) ?; w: k, }
-------------------------------------------------------------* x' e3 I/ m% z2 x0 c
Toronto 1.4% 252,088 242,918 3.8%4 g) D6 Q t, |! u- r! g6 q# F) W
-------------------------------------------------------------' I+ c! G7 c k% l+ j; {! o: c7 _
Winnipeg 12.0% 105,648 96,008 10.0%
$ p) n# c+ e9 f0 m( U -------------------------------------------------------------
5 O; _$ X/ H; W0 E9 o( N Saskatchewan 9.7% 106,250 101,000 5.2%
; j& o" G8 U6 s4 d) l6 @) |: K$ H6 E -------------------------------------------------------------
4 Q4 Q* d' U6 a( B: V- _4 l Calgary 53.5% 245,844 153,867 59.8%
5 ^% w- Y2 [( w% d5 P -------------------------------------------------------------
# J8 {/ d7 b7 V9 {/ G1 Y Edmonton 53.1% 200,433 131,500 52.4%
( h9 Q7 O9 ~# V2 L -------------------------------------------------------------& }# v4 X N1 q0 s4 H
Vancouver 13.8% 366,250 323,250 13.3%5 @8 O9 n& A; P* g F, j
-------------------------------------------------------------" v% s) H8 f: x1 O5 V$ l
Victoria 3.1% 229,000 220,000 4.1%
$ N5 M" f# k6 q1 S2 I -------------------------------------------------------------2 l3 m6 x/ d) M% ?
National 13.2% 211,562 185,296 14.2%( x# o3 q; i) m6 S6 r# i
-------------------------------------------------------------2 p8 A& ]4 ?0 B% ?- s+ V. t
>>; y! u0 H a4 I, P
9 @: x/ g; X. m( P" F1 Y
Average house prices are based on an average of all sub-markets examined8 w2 ? L: Z: h* r( d
in the area, except for the smaller markets of Charlottetown, Moncton, Saint, ^% K' ]# w. `1 r
John and Victoria.' t& f5 ?% m6 o, g6 c
6 P0 C2 J' |; {. a8 Y2 Q The Royal LePage Survey of Canadian House Prices is the largest, most
( E& R" E }5 z' Y3 L& jcomprehensive study of its kind in Canada, with information on seven types of1 e4 n1 v1 F: e$ i9 ?# {; B
housing in over 250 neighbourhoods from coast to coast. This release `- h' M! I0 I7 `+ m5 X
references an abbreviated version of the survey, which highlights house price6 O W4 K( |9 ~
trends for the three most common types of housing in Canada in 80 communities( @1 Z( i$ W+ s% ?# \
across the country. A complete database of past and present surveys is
0 W8 [8 S( R) ]9 mavailable on the Royal LePage Web site at www.royallepage.ca, and current4 F. w1 y+ y- A; ]/ y+ s( D
figures will be updated following the end of the third quarter. A printable& m) F& ?6 S3 G
version of the third quarter 2006 survey will be available online on& j. w( _! B8 o% ]) }& q$ J
November 15, 2006.
* v5 N1 E; I" A2 R* Y* h: v# b Housing values in the Royal LePage Survey are Royal LePage opinions of4 Z- P# o2 s2 {! t. r
fair market value in each location, based on local data and market knowledge5 ]! {, V9 G9 X2 @
provided by Royal LePage residential real estate experts. Historical data is
. [$ ?( y$ y9 d$ F8 S, \available for some areas back to the early 1970s. |
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