Toronto housing market posts healthy growth in third quarter of 2013

High level of activity seen during summer months driven by pent-up demand

TORONTO, Oct. 10, 2013 /CNW/ - The Royal LePage House Price Survey released today showed strong year-over-year price gains for most housing types surveyed in Toronto, with the exception of standard condominiums, which were almost identical to last year's average prices.

Detached bungalows and standard two-storey homes both saw healthy year-over-year price appreciation in the third quarter, rising 5.0 per cent to $577,563 and 4.1 per cent to $678,016, respectively. Standard condominiums were essentially flat compared to last year, inching up 0.3 per cent to an average price of $355,483.

"We had a much busier summer this year in terms of number of homes sold in part because of a slower than average start to the year," said Gino Romanese, senior vice president, Royal LePage. "Unit sales this quarter were up in all housing types because of the pent-up demand from buyers."

Romanese stated that while there is good inventory available on the market, it is matched by strong demand. The one area where supply is becoming more constrained is bungalows, which witnessed the strongest year-over-year growth of any housing type.

According to Romanese, there is a tremendous amount of interest in Toronto real estate, particularly from first-time and "905" buyers moving into the city. He pointed out that the Echo Generation - the children of Baby Boomers - are now buying their first property, which is often a condo.

"The market remains hot for homes that are well-priced and located in desirable areas," concluded Romanese. "We continue to see frequent multiple offer situations, as well as an increasing number of pre-emptive offers."

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 recession.

"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 second quarter of 2013. A printable version of the second 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 experts. 

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 symbolTSX:BRE.

For more information, visit www.royallepage.ca.

SOURCE: Royal LePage Real Estate Services

Gwen McGuire
Kaiser Lachance Communications
647-725-2520
[email protected]

Tammy Gilmer
Director, Global Communications & Public Relations
Royal LePage Real Estate Services
416-510-5783
[email protected]