Single family homes perform best, while standard condo sales decreased
against a rise in demand for higher end units
SASKATOON, Jan. 6 /CNW/ - House prices in Saskatoon showed
year-over-year appreciation in all property types surveyed, according
to the Royal LePage House Price Survey and Market Survey Forecast
Detached bungalows led the way with price gains of 6.7 per cent over the
same time last year, selling for a fourth-quarter average of $331,250.
Standard condominiums showed year-over-year price gains of 6.2 per
cent, selling for a fourth quarter average of $230,000. Standard
two-storey homes followed close behind with an overall increase of 6.1
per cent, selling for an average price of $359,250.
"The market is performing as earlier predicted for many regions in
Canada," says Norm Fisher, Royal LePage Saskatoon Real Estate. "A
strong first half of 2010 and a weaker second half - Saskatoon was no
exception to these forecasts." Multiple offers in the fourth quarter
were very rare and homes typically sold for below asking price.
Condo sales are down roughly 25 per cent while inventories are up 35 per
cent over last year. Properties under $300,000 represent the most
sensitive segment of the market as they are most impacted by changing
"We noticed this trend a few months ago," added Fisher. "The higher end
is strengthening. Saskatoon is on good economic footing with one of the
lowest unemployment rates in the country."
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:
Director, Public Relations and National Communications
Royal LePage Real Estate Services