"Only modest house price declines despite predictions of double digit
depreciation."TORONTO, April 8 /CNW/ - Consistent with current economic trends,
Canadian residential real estate prices declined during the first quarter,
according to a quarterly House Price Survey released today by Royal LePage
Real Estate Services Ltd. As the market correction unfolds, year-over-year
home prices were lower, as was expected. Increased buyer activity at the end
of March suggests that spring will bring its typical increase in unit sales
activity as buyers target summer moves.
Regional disparities in quarterly housing prices showed markets in
Atlantic Canada outperforming other areas of the country as hardy local
economies spurred house price growth across the three housing types surveyed.
Markets in central Quebec and eastern Ontario held steady with areas of modest
growth and limited declines. In the balance of Ontario, and in particular the
Greater Toronto Area, prices retreated from the record levels set in the first
quarter of 2008, with most trading areas showing mid to low single digit
declines. With the exception of Manitoba, western provinces saw significant
changes as the rapid run-up in prices experienced earlier in the decade gave
way to double-digit declines in most regions. As market corrections in B.C.
and Alberta were underway well ahead of the full impact of the current
economic crisis, it is suggested that these areas may be first in Canada to
stabilize.
"We expected a sharper decline in house prices across Canadian markets
during the first quarter," said Phil Soper, president and chief executive
officer, Royal LePage Real Estate Services Ltd. With economic hardship
dominating our global consciousness, it was predictable that dwindling
consumer confidence would continue to drive prices lower. But markets were
relatively resilient during the period. Soper continued, "Canadians in most
regions should not expect the prices of their homes to begin appreciating
again until the overall economy begins to stabilize, likely in the first half
of 2010."
The report shows that the average price of a two storey home in Canada
declined 6.5 per cent to $379,636 compared to the same quarter last year. In
Vancouver, the average price declined 12.6 per cent year-over-year to $828,750
while in St. John's prices climbed 15.6 per cent to $265,000. With consumer
confidence bolstered following investments by Vale Inco NL and Hebron, Soper
commented: "Using house price change as a gauge, Newfoundland is Canada's sole
remaining seller's market."
Moderate growth occurred for detached bungalows in Montreal (up 2 per
cent) and Ottawa (up 1.9 per cent), while Toronto saw a decline of 6.3 per
cent compared to the same period in 2008. Prices in the prairies and in
western cities declined with the average price for a detached bungalow down
8.1 per cent in Saskatoon and 11.2 per cent in Edmonton.
The nation's condominium market waned with the average price of a
standard unit dropping 3.4 per cent to $232,877 compared to $241,152 in the
first quarter of 2008. Calgary saw a 12.8 per cent drop in average price of
condominiums, but declines were less severe in Vancouver (down 5.3 per cent)
and in Toronto (down 3.1 per cent). "Condominiums are generally the most
affordable housing option, especially in urban centres," Soper said. "With
record low lending rates and new government initiatives aimed at encouraging
first-time buyers to enter the market, ownership at the entry level is
becoming increasingly accessible."
Noting recent global efforts to address the economic crisis, including
the coordinated response from the world's leading economies coming out of the
G20 meeting and stimulus package announcements at home and in the United
States, as well as what appears to be the beginning of equity market recovery,
Soper commented, "These glimmers of economic hope are coinciding with a time
of year that typically brings renewed interest in the housing market.
Traditional spring trends - increases in open house attendance, calls to
brokers and viewing appointments - tell us that potential buyers are stepping
off the sidelines and an increase in purchase activity is likely to follow."
Royal LePage's quarterly House Price Survey shows the following annual
change of prices for key housing segments in select national markets:-------------------------------------------------------------------------
Detached Bungalows
-------------------------------------------------------------------------
Q1 2009 Last Quarter Q1 2008 Bungalow %
Market Average Average Average Change
-------------------------------------------------------------------------
Halifax 215,667 195,000 185,000 16.6%
-------------------------------------------------------------------------
Charlottetown 157,000 157,000 155,000 1.3%
-------------------------------------------------------------------------
Moncton 156,000 150,000 152,000 2.6%
-------------------------------------------------------------------------
Fredericton 167,000 162,000 160,000 4.4%
-------------------------------------------------------------------------
Saint John 201,476 225,064 199,786 0.8%
-------------------------------------------------------------------------
St. John's 193,000 190,050 164,000 17.7%
-------------------------------------------------------------------------
Montreal 232,375 235,293 227,799 2.0%
-------------------------------------------------------------------------
Ottawa 317,500 321,333 311,583 1.9%
-------------------------------------------------------------------------
Toronto 405,286 376,286 432,679 -6.3%
-------------------------------------------------------------------------
Winnipeg 231,663 221,150 229,125 1.1%
-------------------------------------------------------------------------
Regina 266,625 274,167 237,138 12.4%
-------------------------------------------------------------------------
Saskatoon 312,500 300,000 340,000 -8.1%
-------------------------------------------------------------------------
Calgary 391,833 410,333 442,852 -11.5%
-------------------------------------------------------------------------
Edmonton 298,750 300,000 336,250 -11.2%
-------------------------------------------------------------------------
Vancouver 743,750 743,750 852,750 -12.8%
-------------------------------------------------------------------------
Victoria 453,000 440,000 439,000 3.2%
-------------------------------------------------------------------------
National 319,865 316,717 337,023 -6.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Standard Two Storey
-------------------------------------------------------------------------
Q1 2009 Last Quarter Q1 2008 2 Storey %
Market Average Average Average Change
-------------------------------------------------------------------------
Halifax 242,000 240,000 229,000 5.7%
-------------------------------------------------------------------------
Charlottetown 188,000 188,000 185,000 1.6%
-------------------------------------------------------------------------
Moncton 134,500 126,000 135,300 -0.6%
-------------------------------------------------------------------------
Fredericton 210,000 210,000 197,000 6.6%
-------------------------------------------------------------------------
Saint John 268,000 294,695 264,000 1.5%
-------------------------------------------------------------------------
St. John's 265,000 261,800 229,333 15.6%
-------------------------------------------------------------------------
Montreal 330,056 334,850 332,389 -0.7%
-------------------------------------------------------------------------
Ottawa 318,500 320,083 309,833 2.8%
-------------------------------------------------------------------------
Toronto 516,052 522,050 545,750 -5.4%
-------------------------------------------------------------------------
Winnipeg 251,721 251,171 242,943 3.6%
-------------------------------------------------------------------------
Regina 245,000 245,000 227,500 7.7%
-------------------------------------------------------------------------
Saskatoon 348,500 348,500 395,000 -11.8%
-------------------------------------------------------------------------
Calgary 390,689 417,511 445,792 -12.4%
-------------------------------------------------------------------------
Edmonton 326,713 354,363 372,738 -12.3%
-------------------------------------------------------------------------
Vancouver 828,750 837,500 948,750 -12.6%
-------------------------------------------------------------------------
Victoria 435,000 433,000 460,000 -5.4%
-------------------------------------------------------------------------
National 379,636 385,777 401,040 -6.5%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Standard Condominium
-------------------------------------------------------------------------
Q1 2009 Last Quarter Q1 2008 Condo %
Market Average Average Average Change
-------------------------------------------------------------------------
Halifax 144,000 144,000 130,000 10.8%
-------------------------------------------------------------------------
Charlottetown 120,000 120,000 120,000 0.0%
-------------------------------------------------------------------------
Moncton N/A N/A N/A N/A(*)
-------------------------------------------------------------------------
Fredericton 137,000 133,000 126,000 8.7%
-------------------------------------------------------------------------
Saint John 181,387 158,283 153,000 18.6%
-------------------------------------------------------------------------
St. John's 205,667 203,000 173,333 18.7%
-------------------------------------------------------------------------
Montreal 206,528 203,808 206,556 0.0%
-------------------------------------------------------------------------
Ottawa 207,833 207,833 198,083 4.9%
-------------------------------------------------------------------------
Toronto 289,397 296,895 298,662 -3.1%
-------------------------------------------------------------------------
Winnipeg 145,943 132,643 138,000 5.8%
-------------------------------------------------------------------------
Regina 168,806 172,917 160,917 4.9%
-------------------------------------------------------------------------
Saskatoon 187,000 186,500 220,000 -15.0%
-------------------------------------------------------------------------
Calgary 245,756 257,189 281,807 -12.8%
-------------------------------------------------------------------------
Edmonton 210,000 219,031 243,750 -13.8%
-------------------------------------------------------------------------
Vancouver 431,500 405,000 455,750 -5.3%
-------------------------------------------------------------------------
Victoria 260,000 265,000 294,000 -11.6%
-------------------------------------------------------------------------
National 232,877 233,462 241,152 -4.0%
-------------------------------------------------------------------------
(*)Housing type is not covered in the select area.The Royal LePage Survey of Canadian House Prices 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 80 communities
across the country. A complete database of past and present surveys is
available on the Royal LePage Web site at www.royallepage.ca, and current
figures will be updated following the end of the first quarter. A printable
version of the first quarter 2009 survey will be available online on May 16,
2009.
Housing values in the Royal LePage Survey are Royal LePage opinions on
fair market value in each location, based on local data and market knowledge
provided by Royal LePage residential real estate experts. Historical data is
available for some areas back to the early 1970s.
About Royal LePage
Royal LePage is Canada's leading provider of franchise services to
residential real estate brokerages, with a network of over 14,000 agents and
sales representatives in 600 locations across Canada. Royal LePage is managed
by Brookfield Real Estate Services, and is part of a brand family that
includes Royal LePage, Johnston and Daniel, Realty World and La Capitale. An
affiliated company, Brookfield Real Estate Services Fund, is a TSX listed
income trust, trading under the symbol "BRE.UN."
For more information visit www.royallepage.ca or www.brookfieldres.com.
For further information: Melissa Cassar, Fleishman-Hillard Canada, (416)
645-3647; Tammy Gilmer, National Communications Manager & Public Relations
Manager, Royal LePage Real Estate Services Ltd., (416) 510-5783
