Increased buyer activity in early 2010 impacts sales in last two
TORONTO, Jan. 6 /CNW/ - The Royal LePage House Price Survey and Market
Survey Forecast released today showed modest year-over-year price
appreciation across all three housing types surveyed in Toronto.
On average, standard two-storey homes witnessed the largest
year-over-year price increase climbing 5.6 per cent to $594,321.
Standard condominiums rose 3.8 per cent to $331,525, while prices for
detached bungalows increased by 3.1 per cent to $481,733.
"Sales in 2010 were front-end loaded. Buyers hastened to the market in
the first half of last year anticipating interest rate hikes and HST,"
said Gino Romanese, senior vice president, Royal LePage Real Estate
Services Ltd. "This distortion to the normal seasonal curve had the
effect of reducing sales in the second half of last year. We are
predicting another strong market in 2011. While sales are expected to
be down 5.9 per cent, to 83,000 units, it remains above Toronto's ten
year unit sales average." According to Romanese, limited inventory
sparked multiple offers on well-priced homes in desirable areas.
However, Romanese added, on average sellers are receiving just under
their asking price.
"We are predicting a 1 per cent increase in the average house price in
Toronto during 2011," added Romanese. The market remains strong as
consumer confidence is returning and interest rates are expected to
stay relatively flat for at least the first half of the year. Rising
inventories coupled with reduced affordability brought about by higher
average prices will temper activity somewhat in 2011, keeping a lid on
price increases this year.
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