The average home price in Montréal should experience a slight rise in the
first quarter of 2010

Demand for all types of properties increased in the fourth quarter of 2009 due to the economic recovery and consumer confidence in the Montréal real estate market

MONTREAL, Jan. 7 /CNW/ - According to the Market Survey Forecast and House Price Survey released today by Royal LePage Real Estate Services, demand for all types of properties is increasing due to the economic recovery and consumer confidence in the Montréal real estate market. The average home price increased considerably in the fourth quarter of 2009 and should experience a slight rise in the first quarter of 2010.

During the fourth quarter, the Montréal market posted a rise in home prices in all surveyed property sectors. The average price of a detached bungalow rose by 4.3% to $248,157. The price of a two-storey house increased 3.3% to $357,888 in twelve months, while the average price of a condominium increased 5% to $220,625.

"The last quarter of 2008 saw the start of the economic crisis. That situation deeply affected the real estate market and contributed to the decline in home sales. It is therefore not surprising that the fourth quarter of 2009 is superior to the same period the previous year. Despite some layoffs, the economy is faring quite well in Québec. The current recovery and low interest rates are encouraging people to consider purchasing a property," explains Dominic St-Pierre, Director, Royal LePage Real Estate Services, Québec region.

The inventory of detached bungalows, two-storey houses, and condominiums is currently decreasing. "It's normal for the real estate market to stabilize after several months of aggressive growth. Right now, inventory is dwindling because the real estate market is performing well and properties are selling fast" adds Dominic St-Pierre.

We are estimating a four to five percent increase in the average home price in 2010. "The possible rise in interest rates, down payments which should be increasing from five to ten percent, and the reduced mortgage amortization period will certainly contribute to an increase in home prices as there may be keen interest in the real estate market in 2010 before these new regulations take effect," says Dominic St-Pierre.

    
    Survey of Canadian House Prices in the fourth quarter of 2009

    Average home prices

    -------------------------------------------------------------------------
                              Detached bungalow
    -------------------------------------------------------------------------
                           Average    Last quarter     Average   Difference
    Market                 Q4 2009       average       Q4 2008  (%) Bungalow
    -------------------------------------------------------------------------
    Beaconsfield           305,000       300,000       285,000         7.0%
    -------------------------------------------------------------------------
    Boucherville           253,600       240,000       244,987         3.5%
    -------------------------------------------------------------------------
    Côte-St-Luc            246,000       245,000       242,000         1.7%
    -------------------------------------------------------------------------
    Dorval                 252,500       250,000       241,000         4.8%
    -------------------------------------------------------------------------
    Lachine                235,000       230,000       222,000         5.9%
    -------------------------------------------------------------------------
    Lasalle/Verdun         205,000       206,000       200,000         2.5%
    -------------------------------------------------------------------------
    West Island                N/A           N/A           N/A          N/A
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce        N/A           N/A           N/A          N/A
    -------------------------------------------------------------------------
    St-Bruno               223,900       217,360           N/A          N/A
    -------------------------------------------------------------------------
    St-Lambert             240,000       232,000       230,000         4.3%
    -------------------------------------------------------------------------
    Westmount                  N/A           N/A           N/A          N/A
    -------------------------------------------------------------------------
    Montréal               248,157       243,286       237,855         4.3%
    -------------------------------------------------------------------------
                           *Type of property not covered in the sector



    -------------------------------------------------------------------------
                          Standard Two-storey house
    -------------------------------------------------------------------------
                                                                 Difference
                           Average    Last quarter     Average  (%) 2-storey
    Market                 Q4 2009       average       Q4 2008      house
    -------------------------------------------------------------------------
    Beaconsfield           380,000       375,000       365,000         4.1%
    -------------------------------------------------------------------------
    Boucherville           292,600       289,333       284,166         3.0%
    -------------------------------------------------------------------------
    Côte-St-Luc                N/A           N/A           N/A          N/A
    -------------------------------------------------------------------------
    Dorval                 255,000       252,000       241,000         5.8%
    -------------------------------------------------------------------------
    Lachine                242,500       240,000       230,000         5.4%
    -------------------------------------------------------------------------
    Lasalle/Verdun             N/A           N/A           N/A          N/A
    -------------------------------------------------------------------------
    West Island            372,000       370,000       365,000         1.9%
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce    380,000       382,000       372,000         2.2%
    -------------------------------------------------------------------------
    St-Bruno               249,000       243,984           N/A         0.0%
    -------------------------------------------------------------------------
    St-Lambert             286,000       279,000       275,000         4.0%
    -------------------------------------------------------------------------
    Westmount              655,000       660,000       640,000         2.3%
    -------------------------------------------------------------------------
    Montréal               357,888       355,917       346,521         3.3%
    -------------------------------------------------------------------------
                           *Type of property not covered in the sector



    -------------------------------------------------------------------------
                             Standard Condominium
    -------------------------------------------------------------------------
                                                                 Difference
                           Average    Last quarter     Average  (%) Standard
    Market                 Q4 2009       average       Q4 2008      condo
    -------------------------------------------------------------------------
    Beaconsfield               N/A           N/A           N/A          N/A
    -------------------------------------------------------------------------
    Boucherville           173,500       177,000       173,350         0.1%
    -------------------------------------------------------------------------
    Côte-St-Luc            239,000       236,000       230,000         3.9%
    -------------------------------------------------------------------------
    Dorval                 222,500       220,000       210,000         6.0%
    -------------------------------------------------------------------------
    Lachine                255,000       253,000       245,000         4.1%
    -------------------------------------------------------------------------
    Lasalle/Verdun         165,000       163,000       162,000         1.9%
    -------------------------------------------------------------------------
    West Island                N/A           N/A           N/A          N/A
    -------------------------------------------------------------------------
    Notre-Dame-de-Grâce    233,000       234,000       232,000         0.4%
    -------------------------------------------------------------------------
    St-Bruno               185,000       177,000           N/A         0.0%
    -------------------------------------------------------------------------
    St-Lambert             177,000       174,500       168,000         5.4%
    -------------------------------------------------------------------------
    Westmount              300,000       285,000       260,000        15.4%
    -------------------------------------------------------------------------
    Montréal               220,625       217,813       210,044         5.0%
    -------------------------------------------------------------------------
                           *Type of property not covered in the sector
    

The Royal LePage Survey of Canadian House Prices 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, and current figures will be updated following the end of the fourth quarter. A printable version of the fourth quarter 2009 survey will be available online on February 5th, 2010.

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 over 14,000 agents and sales representatives in 600 locations across Canada. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Johnston and Daniel, Realty World and La Capitale. 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 or www.brookfieldres.com

SOURCE Royal LePage Real Estate Services

For further information: For further information: Valérie Dupuis, Fleishman Hillard Inc., (514) 908-0110 ext. 312, valerie.dupuis@fleishman.ca; Tammy Gilmer, Director, Public Relations and National Communications, Royal LePage Real Estate Services, (416) 510-5783


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