Over-supply leading to price decreases in some select housing segments
ST. JOHN'S, Oct. 10, 2013 /CNW/ - The Royal LePage House Price Survey
released today showed significant year-over-year price increases across
all housing types surveyed in St. John's.
Standard two-storey home, detached bungalow and standard condominium
prices each posted significant gains of 12.1 per cent year-over-year,
landing at $400,333, $296,000 and $315,333, respectively.
"Although new construction has slowed, activity in the St. John's area
is still vibrant," said Glenn Larkin, broker/owner Royal LePage
Professionals 2000. "Prices are continuing to stay strong as move-up
buyers compete with executive buyers moving from the mainland."
"We have started to see more reductions in the last few months when
compared to the past couple years, however," cautioned Larkin. "There
is an over-supply in some select higher-end segments of the market, and
the recent hike in interest rates has caused some potential buyers to
Nationally, the average price of a home in Canada increased between 1.2
per cent and 4.1 per cent in the third quarter of 2013.
The survey showed a year-over-year average price increase of 3.7 per
cent to $418,686 for standard two-storey homes, while detached
bungalows rose 4.1 per cent to $381,811. During the same period, the
average price for standard condominiums saw a more moderate increase,
rising 1.2 per cent to $246,530. Sales volumes surged in a number of
regions, as Canadians re-entered the housing market after sitting on
the sidelines for more than a year - marking the end of the most
significant housing market correction since the 2008-2009 global
"Canada experienced a significant housing market correction over the
last four quarters that most in the nation missed entirely," said Phil
Soper, president and chief executive of Royal LePage. "Many regions
experienced dramatic slowdowns in the number of homes trading hands,
but news of double-digit unit sales declines went largely unnoticed,
over-shadowed by a macabre fascination with the prospect of a
U.S.-style home price collapse, which of course never transpired. Our
over-heated real estate market of 2011 and early 2012 drove some to the
sidelines. Home price appreciation ground to a halt for a year - a
necessary breather and predictable market response."
"Our housing market turned a corner in the third quarter. Buyers
returned to the streets in droves, resulting in a sharp increase in
home sales. In many cities, there simply weren't enough properties on
the market to satisfy demand, which put upward pressure on prices for
the first time in 2013," continued Soper. "We expect this positive
momentum to continue through the all-important spring market of 2014,
buoyed by a combination of pent-up demand, increasing consumer
confidence and continued low interest rates."
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 website at www.royallepage.ca. Current figures will be updated following the complete tabulation of
the data for the third quarter of 2013. A printable version of the
third quarter 2013 survey will be available online on November 7, 2013.
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
14,500 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 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.
SOURCE: Royal LePage Real Estate Services
For further information:
Kaiser Lachance Communications
Director, Global Communications & Public Relations
Royal LePage Real Estate Services