Condos and detached bungalows witness largest increases
TORONTO, April 12 /CNW/ - The Royal LePage House Price Survey released
today showed year-over-year price appreciation across all three housing
types surveyed in Toronto.
On average, detached bungalows witnessed the largest year-over-year
price increases climbing 4.5 per cent to $499,050. Standard
condominiums rose 3.7 per cent to $339,025, while prices for standard
two-storey homes increased by 2.5 per cent to $589,929.
"Affordability has kept detached bungalows in demand. We are still
seeing a lot of first-time buyers in the market that are motivated by
the concern of rising interest rates. Detached bungalows have also been
popular with builders who either renovate or rebuild them into larger
units," said Gino Romanese, senior vice president, Royal LePage Real
Estate Services Ltd.
"Our condo market has continued to defy expectations. While this
property type has always been attractive to first-time buyers because
of their affordability, increasingly more buyers are choosing to live
in condos as a lifestyle choice. In addition, the Toronto condo market
is attractive to foreign buyers who are looking to add a low
maintenance residence in the heart of Toronto to their portfolio,"
According to Romanese, sellers are often receiving multiple offers, but
usually only on appropriately priced homes in desirable neighbourhoods.
He added that this is much more typical than the boom experienced three
years ago, when sellers were receiving multiple offers across the
Regarding unit sales, Romanese stated that the late arrival of spring
weather has kept inventory low, which has impacted market activity, and
noted that a year-over-year comparison is challenging as 2010 was
"Comparing sales in the first quarter of 2011 to 2010 is difficult
because last year buyers rushed to the market early in the year to
avoid HST and take advantage of low rates," concluded Romanese.
Nationally, low interest rates and a recovering economy continued to
fuel activity in Canada's housing markets over the past year, which has
led to country-wide increases in average home prices. In the first
quarter of 2011, the national average price of a detached bungalow rose
4.3 per cent year-over-year to $341,355, while standard two-storey
homes rose 3.5 per cent to $379,388 and standard condominiums rose 4
per cent to $237,919.
"The rate at which Canadian homes are appreciating may well have peaked
for the next year or so," said Phil Soper, president and chief
executive of Royal LePage Real Estate Services. "We expect house prices
will continue to creep up, but most of the excess demand created by the
initial drop in interest rates has been satisfied, and affordability
continues to erode slowly, allowing the listings supply to catch up.
In most markets, lower single digit percentage increases are more
likely for the balance of the year."
"Canada's real estate market has maintained momentum coming out of 2010,
indicating that the post-recession recovery is continuing," Soper
added. "While low interest rates continue to drive demand, the tepid
pace at which employment levels are improving is tempering the rate of
home price appreciation in many Canadian cities."
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 first quarter 2011. A printable version of the first
quarter 2011 survey will be available online on May 6th, 2011.
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
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 or www.brookfieldresinc.com.
SOURCE Royal LePage Real Estate Services
For further information:
Director, Global Communications & Public Relations
Royal LePage Real Estate Services