- Home Values Down From 2008 Levels But Showing Signs of a Recovering
CALGARY, Oct. 8 /CNW/ - The Royal LePage House Price Survey released today revealed slight increases in average house prices in the third quarter of 2009 compared to that of the second quarter in the Calgary market.
Housing categories such as standard two-storey homes and detached bungalows saw average quarterly price increases from $400,167 to $414,556, and $401,600 to $401,944, respectively, as first-time home buyers continued to capitalize on low interest rates and well-priced homes in the third quarter. Standard condominiums were one of the only exceptions to the price increase trend, decreasing slightly from $252,344 to $249,500 from last quarter.
However, average year-over-year prices for all housing types in Calgary decreased due to the recent economic downturn. Standard two-storey homes show an average decrease of 4.7 per cent year-over-year, while detached bungalows and condominiums dropped 9.3 per cent and 7.3 per cent, respectively.
"Although the average price of a bungalow is less than what it was last year at this time, we are beginning to see some signs of recovery in the market," said Ted Zaharko, Broker, Royal LePage Foothills Realty. "Prices in almost all housing categories are slightly higher than they were in the second quarter of 2009".
Overall Canada's housing market is on the road to recovery, but despite the strength of the market in the third quarter giving the appearance of a surge in real estate activity, Royal LePage cautioned that sales are actually normal but lagging approximately one month behind the typical seasonal pattern in year-to-date analysis.
"The economic recession interrupted the flow of the real estate cycle but it is essentially back on track," said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services. "There is the illusion of a boom in the market, but in fact what we are experiencing is the end of a normal, short-term correction. Once housing supply returns to normal levels, we believe the economy will support modest pricing growth into 2010."
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 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. Current figures will be updated following the complete tabulation of the data for the third quarter. A printable version of the third quarter 2009 survey will be available online on November 6th, 2009.
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 believes in the importance of giving back to the community and is the only Canadian real estate company to have its own charitable foundation. The Shelter Foundation is dedicated exclusively to funding women's shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Johnston and Daniel, and La Capitale Real Estate Network. 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.
SOURCE Royal LePage Real Estate Services
For further information: For further information: Jacque Benson, Fleishman-Hillard Canada, (403) 266-4710 ext. 227; Tammy Gilmer, Director, Public Relations and National Communications, Royal LePage Real Estate Services, (416) 510-5783