Average house prices in Montréal rise in second quarter, should remain stable
for the second half of 2010

Low interest rates and a lack of inventory led to increases but greater supply in third and fourth quarters will cause prices to stabilize

MONTREAL, July 7 /CNW/ - The Royal LePage House Price Survey and Market Survey Forecast released today showed strong year-over-year price appreciation for all housing types surveyed in Montreal. A low inventory of homes for sale combined with the expectation that interest rates would rise led to the increases seen in the second quarter. Royal LePage anticipates a more balanced local real estate market for the remainder of the year and predicts that house prices will stabilize.

During the second quarter, the average price of a detached bungalow increased by 8.7 per cent to $255,906. The price of a standard two-storey home rose 7.5 per cent to $357,833 year-over-year, while the average price of a standard condominium was up 8.0 per cent to $226,048.

"The real estate market was quite active during the months of April and May. Buyers were motivated to enter the market before interest rates were expected to rise while low inventory levels meant that supply couldn't keep up with demand. This led to price increases for all housing types in Montreal," explained Dominic St-Pierre, director, Royal LePage Real Estate Services, Québec region. "Inventory levels rose toward the end of the second quarter and the decrease of demand from first-time homebuyers have caused price appreciation to slow in June."

St-Pierre noted that first-time homebuyers, for whom affordability is a major concern, were the most active at the beginning of the second quarter. "The majority of first-time homebuyers purchased homes in the first quarter and early second quarter of 2010 since they were concerned about the increase of interest rates," he said. "With affordability eroding slightly at the end of Q2, second and third-time homebuyers have become the most active in the market. They are interested in high-end properties and sectors such as Mont-Royal, Centre-Ville and St-Laurent," said St-Pierre.

According to St-Pierre, the real estate market should slow down in the second part of the year though prices for all housing types in Montreal should remain stable. "The real estate market will remain excellent, but will be more balanced until the end of 2010. The number of unit sales for this year should be similar or slightly over what we have seen in 2009. For now, we have 24 per cent more unit sales than the same period last year. However, this advance will slowly crumble to meet last year's numbers. The real estate market should slowdown in July and be more active at the beginning of September as first-time home buyers will be back on the market," he concluded.

Survey of Canadian House Prices in the second quarter of 2010

Average home prices

    
    -------------------------------------------------------------------------
                                            Standard bungalow
    -------------------------------------------------------------------------
                                              Last                Difference
                              Average      quarter      Average        (%)
      Market                  Q2 2010      average      Q2 2009     Bungalow
    -------------------------------------------------------------------------
    Beaconsfield              310,000      305,000      295,000         5.1%
    -------------------------------------------------------------------------
    Boucherville              269,246      256,000      238,687        12.8%
    -------------------------------------------------------------------------
    Côte-St-Luc               251,000      249,000      242,000         3.7%
    -------------------------------------------------------------------------
    Dorval                    275,000      260,000      247,000        11.3%
    -------------------------------------------------------------------------
    Lachine                   265,000      245,000      227,000        16.7%
    -------------------------------------------------------------------------
    Lasalle/Verdun            207,000      206,000      205,000         1.0%
    -------------------------------------------------------------------------
    Montréal West*              n/a          n/a          n/a          n/a
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce*        n/a          n/a          n/a          n/a
    -------------------------------------------------------------------------
    St-Bruno                  225,000      223,900      200,000        12.5%
    -------------------------------------------------------------------------
    St-Lambert                245,000      244,000      229,500         6.8%
    -------------------------------------------------------------------------
    Westmount*                  n/a          n/a          n/a          n/a
    -------------------------------------------------------------------------

    Montréal                  255,906      248,613      235,523         8.7%

    -------------------------------------------------------------------------
                              * Type of property not covered in the sector



    -------------------------------------------------------------------------
                                            Two-storey house
    -------------------------------------------------------------------------
                                                                  Difference
                                              Last                      (%)
                              Average      quarter      Average     2-storey
      Market                  Q2 2010      average      Q2 2009        house
    -------------------------------------------------------------------------
    Beaconsfield              390,000      380,000      375,000         4.0%
    -------------------------------------------------------------------------
    Boucherville              321,500      305,000      277,250        16.0%
    -------------------------------------------------------------------------
    Côte-St-Luc*                n/a          n/a          n/a          n/a
    -------------------------------------------------------------------------
    Dorval                    275,000      265,000      248,000        10.9%
    -------------------------------------------------------------------------
    Lachine                   275,000      255,000      236,000        16.5%
    -------------------------------------------------------------------------
    Lasalle/Verdun*             n/a          n/a          n/a          n/a
    -------------------------------------------------------------------------
    Montréal West             374,000      374,000      365,000         2.5%
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce       385,000      383,000      380,000         1.3%
    -------------------------------------------------------------------------
    St-Bruno                  255,000      249,000      230,000        10.9%
    -------------------------------------------------------------------------
    St-Lambert                290,000      290,000      275,000         5.5%
    -------------------------------------------------------------------------
    Westmount                 655,000      655,000      610,000         7.4%
    -------------------------------------------------------------------------

    Montréal                  357,833      350,667      332,917         7.5%

    -------------------------------------------------------------------------
                              * Type of property not covered in the sector



    -------------------------------------------------------------------------
                                            Condominium
    -------------------------------------------------------------------------
                                                                  Difference
                                              Last                      (%)
                              Average      quarter      Average     Standard
      Market                  Q2 2010      average      Q2 2009        condo
    -------------------------------------------------------------------------
    Beaconsfield*               n/a          n/a          n/a          n/a
    -------------------------------------------------------------------------
    Boucherville              196,430      190,500      177,800        10.5%
    -------------------------------------------------------------------------
    Côte-St-Luc               238,000      239,000      232,000         2.6%
    -------------------------------------------------------------------------
    Dorval                    240,000      232,000      216,000        11.1%
    -------------------------------------------------------------------------
    Lachine                   280,000      262,000      250,000        12.0%
    -------------------------------------------------------------------------
    Lasalle/Verdun            169,000      168,000      167,000         1.2%
    -------------------------------------------------------------------------
    Montréal West*              n/a          n/a          n/a          n/a
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce       237,000      235,000      232,000         2.2%
    -------------------------------------------------------------------------
    St-Bruno                  187,000      185,000      177,000         5.6%
    -------------------------------------------------------------------------
    St-Lambert                182,000      180,000      172,000         5.8%
    -------------------------------------------------------------------------
    Westmount                 305,000      300,000      260,000        17.3%
    -------------------------------------------------------------------------

    Montréal                  226,048      221,278      209,311         8.0%

    -------------------------------------------------------------------------
                              * Type of property not covered in the sector
    

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 second quarter. A printable version of the second quarter 2010 survey will be available online on August 6, 2010.

Housing values in the Royal LePage 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. 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 nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage is the only Canadian real estate company to have its own charitable foundation; the Shelter Foundation which is dedicated exclusively to funding women's shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services. 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

SOURCE Royal LePage Real Estate Services

For further information: For further information: Valérie Dupuis, Fleishman Hillard Inc., (514) 866-6776, ext. 312, valerie.dupuis@fleishman.ca; Tammy Gilmer, Director, Public Relations and National Communications, Royal LePage Real Estate Services, 416 510-5783


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