Healthy inventory levels push prices down for most area homes
SAINT JOHN, Jan. 12, 2012 /CNW/ - The Royal LePage House Price Survey
and Market Survey Forecast released today showed year-over-year house
prices in Saint John were largely flat or down slightly in the fourth
Detached bungalows decreased 2.2 per cent year-over-year to $179,946,
while standard two-storey properties were flat, declining slightly 0.3
per cent compared to the same period last year. Standard condominiums
were the exception, with average prices climbing 16.1 per cent
year-over-year, though these gains resulted from the sale of a few
higher-end resale units and are not reflective of the condo market as a
"The average price of standard condominiums was skewed by the sale of
several higher-end units in the Three Sisters condominium development,"
said John McAloney, broker and owner, Royal LePage Atlantic. "When
looking at the market for standard condominiums in general, it more
closely resembled the rest of the local market where a healthy supply
of homes for sale kept prices essentially in line with the same period
According to McAloney, the fourth quarter saw a significant
year-over-year increase in inventory which led to a buyer's market in
"We expect the buyer's market conditions to continue into the early part
of 2012," he added.
Among those buying homes in the fourth quarter, the most active were
those looking to take advantage of low interest rates. According to
McAloney, this group included first-time buyers and move-up buyers but
also included empty nesters looking to downsize.
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 unsustainable. 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 is 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:
Director, Global Communications & Public Relations
Royal LePage Real Estate Services