Healthy inventory levels and low interest rates favour buyers
VICTORIA, BC, July 10, 2012 /CNW/ - The Royal LePage House Price Survey
and Market Survey Forecast released today showed year-over-year price
decreases among all housing types surveyed in Victoria.
Prices for detached bungalows fell an average of 3.2 per cent
year-over-year to $460,000, while standard two-storey homes posted a
similar decline, falling 3.4 per cent year-over-year to $461,000.
Standard condominiums posted the largest price decrease, falling 4.8
per cent year-over-year to $280,000.
"Low interest rates continued to drive demand in the second quarter of
2012," said Carol Geurts, Royal LePage Coast Capital Realty. "However,
inventory levels have also risen as expected, and are likely to meet or
exceed figures from last year. As a result, buyers currently have the
benefit of greater choice and many are taking the time to shop around
before putting in an offer."
Geurts explains that first-time buyers, and seniors looking to downsize
continue to be very active groups in Victoria's real estate market.
"At this time of year, we also see government transfers which continue
to be one of the driving forces behind our spring market," added
Geurts. "Victoria has always been a destination of choice and with one
of the best climates in Canada, we anticipate that will continue to
attract buyers from across the country."
Nationally, in the second quarter, standard two-storey homes rose 4.7
per cent year-over-year to $408,423, while detached bungalows increased
5.5 per cent to $376,311. Average prices for standard condominiums
increased 3.3 per cent to $245,825. During this period, signs from
across the country clearly indicated that the national housing market
was at a turning point, with some major regions continuing to grow
unabated while others peaked and began to pull back for the first time
in three years.
"We have had three years of solid house price appreciation in almost all
regions of the country," said Phil Soper, president and CEO of Royal
LePage Real Estate Services. "Confidence in Canada's real estate market
is sound, but home prices cannot grow faster than salaries and the
underlying economy indefinitely. Some regions have reached or perhaps
even exceeded the current upper level of price resistance as buyers
have embraced an era of historically low mortgage rates."
The first-time buyer segment of the population, which represents up to
half or all transactions and where activity strongly correlates to low
interest rates, is expected to be slowed by recent regulatory changes
that will reduce access to insured mortgages.
"The most recent set of mortgage changes, the fourth in four years, is
also the most aggressive. The cumulative impact of these new
regulations has created a significantly higher hurdle for young buyers
seeking their first home and comes at a time when the market was
slowing of its own accord. The timing of this intervention was
unfortunate," added Soper.
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 second quarter 2012. A printable version of the second
quarter 2012 survey will be available online on August 9, 2012.
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