Slight uptick in sales activity shows early sign of market recovery
ST. JOHN'S, July 13, 2017 /CNW/ - The aggregate1 price of a home in St. John's saw a moderate decline in pricing during the second quarter of 2017, falling 3.1 per cent year-over-year to $320,164, according to the Royal LePage House Price Survey2 and Market Survey Forecast released today.
When broken out by housing type, the median price of a two-storey home fell 3.6 per cent year-over-year to $354,154 in the second quarter. Over the same period, the median price of a bungalow decreased 4.2 per cent to $296,298, while the condominium segment saw sizable growth, rising 8.4 per cent year-over-year to $308,243.
"Things are finally starting to come together for Newfoundland's residential real estate market," said Glenn Larkin, salesperson, Royal LePage Professionals. "While we are still seeing year-over-year home price declines, the region is definitely experiencing a renewed sense of optimism in the market. Houses are selling at a quicker pace due to a slight uptick in demand, as the province's employment prospects continue to improve."
Looking ahead to the end of 2017, Larkin forecasts that home values and sales across St. John's will level out, following a slight increase in the near-term.
"Though we expect to see some home price gains in the next couple of months as a result of a busier summer, the market will ultimately flatten out," Larkin added. "For quite some time, Newfoundland has been in a recession. We're seeing a light at the end of the tunnel – it's not a glaring sun by any means, but it's definitely a little brighter than before."
Nationally, Canada's residential real estate market posted strong home price gains in the second quarter of 2017, with the majority of metropolitan markets across Canada displaying expansionary trends. During the quarter, the Royal LePage National House Price Composite showed that the price of a home in Canada increased 13.8 per cent year-over-year to $609,144. When broken out by housing type, the price of a two-storey home rose 14.6 per cent year-over-year to $725,391, while the price of a bungalow increased by 10.7 per cent to $511,965. Over the same period, the price of a condominium climbed 13.4 per cent to $397,826.
"Following a period of unprecedented regional disparity in activity and price appreciation, we are now seeing a return to healthy growth in the majority of Canadian housing markets," said Phil Soper, president and CEO, Royal LePage. "The white-hot markets are moderating to very warm; the depressed markets are beginning to grow again. Canadian housing is in great shape – a statement that I certainly did not make last quarter."
"The rate of national house price appreciation that we experienced in the second quarter continues to be above what we would consider a normal range, driven primarily by very strong year-over-year price growth across much of Ontario," continued Soper.
Looking ahead to the remainder of the year, Royal LePage forecasts that the national aggregate price of a home will increase by 9.5 per cent in 2017 to $617,773 when compared to year-end, 2016.
About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 53 of the nation's largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, Brookfield RPS, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
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 over 17,000 real estate professionals in more than 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 and 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.
1 Aggregate prices are calculated via a weighted average of the median values of homes for reported property types in the regions surveyed
2 Powered by Brookfield RPS
SOURCE Royal LePage Real Estate Services
For further information: Catherine Snider, Kaiser Lachance Communications, 905.751.9619, firstname.lastname@example.org