- Low Interest Rates and Pent-Up Demand Push Prices Up -
OTTAWA, Oct. 8 /CNW/ - The Royal LePage House Price Survey released today showed that pent-up demand over the winter months continued to fuel the market in the third quarter with all housing types in the Ottawa region posting price increases over 2008.
With low interest rates continuing to drive affordability, and a reduced housing inventory thanks to five record months since April, prices for detached bungalows in Ottawa rose 3.1 per cent year-over-year to $328,667 while standard two-storey homes increased 3.3 per cent to $327,833. Standard condominiums were up 3.5 per cent to $213,583 year-over-year.
John Rogan, Broker/Manager, Royal LePage Performance Realty, credits much of the recent housing activity to first-time buyers. "First-time buyers are taking advantage of low interest rates. They can see the advantages of buying over renting," said Rogan, noting that for this reason "we are seeing multiple offers and sellers getting their asking price."
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 showing a normal level of activity but are actually 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."
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: Sarah Louise Gardiner, Fleishman-Hillard Canada, (416) 644-2907; Tammy Gilmer, Director, Public Relations and National Communications, Royal LePage Real Estate Services, (416) 510-5783