Condominiums and two-storey homes lead the way in price appreciation
VICTORIA, Jan. 6 /CNW/ - Victoria house prices in the fourth quarter
2010 were up for all housing types surveyed, according to the Royal
LePage House Price Survey and Market Survey Forecast released today.
Standard condominiums led the way with price gains of 7.5 per cent over
the same period last year, selling for a fourth quarter average of
$285,000. Standard two-storey homes followed closely behind, with
year-over-year gains of 6.9 per cent, selling for a fourth quarter
average of $480,000. Detached bungalows sold for an average price of
$490,000, a gain of 3.4 per cent.
Multiple offers were rare and homes typically sold below asking price,
but sales in the fourth quarter were generally stable. As is typical
during winter months, inventory is at the seasonal low. However, levels
are up 25 per cent over last year indicating that sellers have renewed
confidence in the market and are willing to list their property.
"Overall, Victoria is heading towards a more balanced market. Inventory
levels are usually lowest from December to January, before new listings
emerge in the spring," said Carol Geurts, Royal LePage Coast Capital
"We dealt with a host of issues last year, including confusion over the
HST," she said. "I see buyer confidence coming back to the market, and
I think that trend will continue throughout 2011."
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