Average house prices predicted to increase by more than 3 per cent in 2011
EDMONTON, Jan. 6 /CNW/ - The Royal LePage House Price Survey and Market
Survey Forecast released today showed year-over-year decline in house
prices for most housing types surveyed in Edmonton. The exception was
detached bungalows, which saw a modest year-over-year increase.
Standard condominiums witnessed the largest year-over-year price
decrease, falling 5.7 per cent to $201,833, while standard two-storey
homes fell 2.3 per cent to $334,286. Detached bungalows were increased
slightly by 1.2 per cent to $305,000.
"Average house prices in the Edmonton market have decreased slightly
year-over-year," said Ken Shearer, broker, Royal LePage Noralta Real
Estate Inc. "However, we expect to see this change in 2011 with house
prices forecast to increase modestly and unit sales forecast to
increase roughly 10 per cent in the new year."
Alberta is expected to lead the Canadian economy in 2011 as new energy
projects north of Edmonton begin production. With interest rates
holding steady and production increasing in Alberta, market forecasts
predict house prices to increase in Edmonton over 3 per cent this year.
"Demand has been building from the move-up buyer as sellers continue to
hold out for better prices. With Alberta's economy improving, we
should begin to see more activity in the coming year," added Shearer.
Nationally, the average price of a home increased between 3.9 and 4.6
per cent in the fourth quarter of 2010, compared to the previous year,
as markets shrugged off a lackluster third quarter and returned to a
post-recession growth profile. Home values are forecast to continue a
moderate and steady climb in many of the country's key housing markets
through 2011 with sales activity skewed to the first half of the year.
"Trends in the housing market continue to be driven by the lingering
after-effects of the recession," said Phil Soper, president and chief
executive of Royal LePage Real Estate Services. "Canadians realize that
interest rates are unsustainably low and that homes will become
effectively more expensive when mortgage rates return to normal levels.
We will likely see more price appreciation early in 2011 as some buyers
complete transactions in advance of anticipated higher borrowing
Across Canada, the average price of a home is forecast to rise 3 per
cent over the coming year to $348,600 while the number of transactions
is expected to drop 2 per cent.
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 fourth quarter 2010. A printable version of the fourth
quarter 2010 survey will be available online on February 4th, 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
experts. Historical data is available for some areas back to the early
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.
SOURCE Royal LePage Real Estate Services
For further information:
403-266-4710 ext. 227
Director, Public Relations and National Communications
Royal LePage Real Estate Services