Fort McMurray housing market balanced in first quarter
Job creation and growing migration levels contribute to healthy market activity
FORT MCMURRAY, AB, April 5, 2012 /CNW/ - The Royal LePage House Price Survey released today showed that Fort McMurray is in a balanced real estate market.
In the first quarter of 2012, detached bungalows sold for an average price of $635,000, while standard two-storey homes sold on average for $710,000. Standard condominiums, traditionally the housing type at the most accessible price point, sold for an average price of $370,000.
"Market activity in the Fort McMurray area is balanced and consistent with levels from last year," said Marian Barry, broker and owner of Royal LePage True North Realty. "Continuous growth in our region's job sector and growing migration levels has helped fuel our real estate market - a trend we expect to continue throughout the coming months."
Barry explains that despite strong demand driven by the local economy, inventory levels across most housing types are up slightly compared to last year, though in line with seasonal averages.
"Current inventory levels are sufficient to meet demand in the region," she said. "This led to the balanced market conditions witnessed in the first quarter."
Nationally, market activity in the first quarter of 2012 was unusually high resulting in tight inventories and strong price appreciation in most major cities. Buyers were attracted into the market by historically low mortgage rates and sellers brought listing inventory to market earlier than normal, encouraged by unseasonably warm weather.
In the first quarter, Canada's average standard two-storey homes rose 5.0 per cent year-over-year to $398,282, while detached bungalows increased 4.4 per cent to $356,306. Average prices for standard condominiums increased 2.2 per cent to $243,153.
"Our housing market is being pulled in opposite directions by opposing economic forces," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "On one hand, there is the rapidly strengthening U.S. economy, increasing Canadian consumer confidence and what can only be called a national mortgage sale encouraging activity and bidding up home prices. On the other, we have signs of over-shooting values and strained affordability in our largest cities. We are likely to see much more modest price appreciation as the year unfolds."
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 2012. A printable version of the first quarter 2012 survey will be available online on May 2, 2012.
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.
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