Detached bungalows and standard two-storey homes in Edmonton post healthy price gains during fourth quarter
Edmonton house prices forecast to increase 0.6 per cent in 2013
EDMONTON, Jan. 8, 2013 /CNW/ - The Royal LePage House Price Survey and Market Survey Forecast released today showed price appreciation across all housing types surveyed in Edmonton.
The average price of a detached bungalow increased 5.3 per cent year-over-year to $331,429, while standard two-storey homes rose 3.8 per cent to $356,286. Year-over-year average prices for standard condominiums remained relatively flat, increasing slightly by 0.2 per cent to $202,714.
"Fourth quarter market activity in Edmonton has decreased slightly when compared to figures from last year," said Ken Shearer, broker, Royal LePage Noralta Real Estate Inc. "This change can be attributed to a number of factors including the lack of first-time buyer activity caused by new mortgage regulations, which were introduced in 2012. Harsher weather conditions and concerns around our province's energy sector were also major factors that limited market activity this quarter."
Shearer explained that year-over-year inventory levels have also decreased slightly causing an upward push on prices for select property types.
"The exception to this would be standard condominiums. The oversupply of this housing type has caused little movement in year-over-year prices despite its continued popularity among first-time buyers," noted Shearer.
Royal LePage forecasts Edmonton homes will sell an average of 0.6 per cent higher this year than in 2012. Sales activity for 2013 is forecast to decrease 3.4 per cent over last year.
Nationally, the average price of a home increased year-over-year between 2.0 and 4.0 per cent in the fourth quarter of 2012. In the fourth quarter, standard two-storey homes rose 4.0 per cent year-over-year to $390,444, while detached bungalows increased 3.6 per cent to $356,790. National average prices for standard condominiums increased 2.0 per cent to $239,374.
As home sales volumes slowed in the second half of 2012, the average Canadian house price, for the most part, held firm. Some consumers delayed their entry into the market during 2012, faced with economic uncertainty as governments in both the U.S. and Europe struggled with debt management plans and as homes in some regions became less affordable. Compared to 2012, fewer homes are expected to trade hands in the first half of 2013, which should slow the pace at which home prices are rising.
Phil Soper, president and chief executive, Royal LePage, noted that the housing market is well into a cyclical correction and that fears of a sharp or drawn out collapse are unwarranted. Home prices have risen faster than salaries and wages for three years and the market requires time to adjust. By the end of 2013, Royal LePage expects the average national home price to be 1.0 per cent higher compared to 2012.
"A helpful comparison is to reflect on the beginning of 2009 when the country was in the grips of a very grim global recession," said Soper. "It was a bleak time, with plunging consumer confidence driven by rapidly spreading unemployment. The meltdown of the American banking and finance sector had sent their housing market into a downward spiral and our own real estate market saw home sale transactions fall dramatically. Price appreciation in Canada ground to a halt, but home values dropped only slightly. With economic fundamentals such as employment levels improving, we expect this cyclical correction to be short-lived."
About the Royal LePage House Price Survey
The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey which highlights house price trends for the three most common types of housing in Canada in 90 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the fourth quarter 2012. A printable version of the fourth quarter 2012 survey will be available online on February 6, 2013.
Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of 14,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's & children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.
For more information, visit www.royallepage.ca.
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