- Prices Showing Signs of a Stabilizing Market -
EDMONTON, Oct. 8 /CNW/ - The Royal LePage House Price Survey released today revealed slight increases in average housing prices in the Edmonton market for the third quarter of 2009.
Detached bungalows and standard condominiums saw average increases from $302,143 to $308,571 and $203,833 to $213,250, respectively, as first-time home buyers continue to capitalize on low interest rates and well-priced homes. The only exception to the price increase trend in the third quarter was standard two-storey homes with a slight price decrease from $328,571 to $327,429.
"Although housing prices still remain lower year-over-year, prices in almost all housing categories are slightly higher than they were in the second quarter of 2009," said Ken Shearer, Broker/Owner, Royal LePage Noralta Real Estate Inc., Edmonton. "We are beginning to see more of a balanced market as we enter the last half of this year."
But while increased buying activity is helping to stabilize prices, average year-over-year home prices in Edmonton are still down compared to a year ago, revealing a market still in recovery. Standard two-storey homes showed an average decrease of 4.5 per cent from $342,857 to $327,429, while detached bungalows declined 5.5 per cent from $326,429 to $308,571 and condominium values dropped 1.6 per cent from $216,667 to $213,250.
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 lagging approximately one month behind the typical seasonal pattern.
"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 low 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