Low interest rates and strong local economy offset by healthy supply of
FORT MCMURRAY, AB, Jan. 12, 2012 /CNW/ - The Royal LePage House Price
Survey and Market Survey Forecast released today showed that Fort
McMurray is in a balanced market.
In the fourth quarter of 2011, standard two-storey homes sold on average
for $710,000, while detached bungalows sold on average for $620,000.
Standard condominiums, traditionally the most accessible price point,
sold for an average price of $380,000.
"We experienced the typical slow down in the fourth quarter. However,
sales increased approximately 10 per cent from this time last year,"
said Marian Barry, broker and owner of Royal LePage True North Realty.
"Job creation in the oil and resource sectors and growing migration
levels have helped contribute to strong market demand in Fort McMurray
- a trend we see continuing throughout 2012."
Barry explains that inventory levels across most housing types are up
slightly from last quarter.
"Inventory levels for standard two-storey homes and standard
condominiums are plentiful due to the number of new construction
projects that are happening throughout the region. However, the number
of detached bungalows on the market is more limited, which may drive up
demand for these property types."
Nationally, despite calls in some quarters for Canadian house prices to
soften in 2011, the market proved resilient as demand created by low
interest rates and a relatively stable national economy created upward
pricing pressure for all housing types surveyed. Further, recent high
profile reports forecasting significant house price declines in 2012
are not supportable. In the fourth quarter, standard two-storey homes
rose 4.2 per cent year-over-year to $375,427, while detached bungalows
increased 6.1 per cent to $344,392. Average prices for standard
condominiums increased 3.6 per cent to $234,680.
"In the recovery period following the 2008-2009 recession, I found
myself repeatedly speaking of 'irrational exuberance' in the Canadian
housing market," said Phil Soper, president and chief executive of
Royal LePage Real Estate Services. "Expectations were too high and the
pace of expansion unsupportable. With this report, I find myself in
exactly the opposite position. Widespread calls for a major real estate
correction in 2012 simply can't be justified. The industry has
significant momentum entering the year, and buoyed by the stimulative
effect of very low interest rates; we expect the market to continue to
expand - albeit at a slower pace."
Royal LePage expects average price growth to continue through 2012 and
predicts national average prices to increase by 2.8 per cent by the end
of the year.
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 fourth quarter 2011. A printable version of the fourth
quarter 2011 survey will be available online on February 10th, 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.
SOURCE Royal LePage Real Estate Services
For further information:
Sarah Louise Gardiner
Director, Global Communications & Public Relations
Royal LePage Real Estate Services