Low inventory and low interest rates drive up prices in seller's market

WINNIPEG, April 12 /CNW/ - Winnipeg's real estate market continues to prosper as 2011 begins, according to the latest Royal LePage House Price Survey. The survey released today showed strong price appreciation across all housing types in Winnipeg year-over-year.

Of the three housing types surveyed, standard two-storey homes posted the largest year-over-year price increases, rising 7.1 per cent to $297,125. Standard condominiums rose 4.0 per cent to $167,429, while prices for detached bungalows were up 3.8 per cent to $269,250, compared to the first quarter of 2010.

"With interest rates remaining low and the economy beginning to strengthen, the Winnipeg market continues to remain strong," said Michael Froese, Marketing Director, Royal LePage Prime Real Estate.

"Sales are up about 10 per cent year-over-year but inventory levels are very low and this has put upward pressure on house prices," added Froese. "Momentum continued to build throughout the first quarter with the number of sales in March rivaling January and February sales combined."

Nationally, low interest rates and a recovering economy continued to fuel activity in Canada's housing markets over the past year, which has led to country-wide increases in average home prices. In the first quarter of 2011, the national average price of a detached bungalow rose 4.3 per cent year-over-year to $341,355, while standard two-storey homes rose 3.5 per cent to $379,388 and standard condominiums rose 4 per cent to $237,919.

"The rate at which Canadian homes are appreciating may well have peaked for the next year or so," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "We expect house prices will continue to creep up, but most of the excess demand created by the initial drop in interest rates has been satisfied, and affordability continues to erode slowly, allowing the listings supply to catch up.  In most markets, lower single digit percentage increases are more likely for the balance of the year."

"Canada's real estate market has maintained momentum coming out of 2010, indicating that the post-recession recovery is continuing," Soper added. "While low interest rates continue to drive demand, the tepid pace at which employment levels are improving is tempering the rate of home price appreciation in many Canadian cities."

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 Web site at  Current figures will be updated following the complete tabulation of the data for the first quarter 2011. A printable version of the first quarter 2011 survey will be available online on May 6th, 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.

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.

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SOURCE Royal LePage Real Estate Services

For further information:

Jacque Benson
Fleishman-Hillard Canada
(403) 266-4710 ext. 227

Michael Froese
Royal LePage Prime Real Estate
(204) 989-7900


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