- But low inventory, high demand helps Q3 prices hold steady or improve
over last quarter -
REGINA, Oct. 8 /CNW/ - The Royal LePage House Price Survey released today shows the average price of homes in Regina is down 3.6 per cent over the same period last year, but balanced market conditions have started putting upward pressure on prices.
Although third quarter selling prices were typically five per cent below asking price, Regina has started seeing multiple offers. The main cause of the recent turnaround is tightening supply and increasing demand.
"Prices have started to pick up," says Mike Duggleby, Manager of Royal LePage Regina Realty. "We had 1,400 listings last year, but we're down to 800 right now. We're sitting solidly on a balanced market, whereas an oversupply created a buyer's market over the last year and a half."
Coupled with low interest rates, Regina's low vacancy rate of 0.7 per cent has prompted first time buyers to enter the market. "Well-priced homes are selling fast," Duggleby says. "If you're hoping to win the lottery by sitting on an overpriced home, you're going to wait a long time."
While inventory is low for most housing types, new construction has resulted in an over-supply of condominiums. "Condos are sitting a bit. Single family homes have been moving well, and the most active price range is $150,000 to $250,000."
At $236,500, the average Q3 Regina price for key housing types (detached bungalows, standard two-stories and standard condominiums) was more affordable than the national average price of $331,409.
Overall Canada's housing market is on the road to recovery, but despite the strength of the market in the third quarter, giving the appearance of a surge in real estate activity, Royal LePage cautioned that sales are actually lagging approximately one month behind the typical seasonal pattern in year-to-date analysis.
"The economic recession interrupted the flow of the real estate cycle but it is essentially back on track," said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services. "There is the illusion of a boom in the market, but in fact what we are experiencing is the end of a normal, short-term correction. Once housing supply returns to normal levels, we believe the economy will support low pricing growth into 2010."
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 third quarter. A printable version of the third quarter 2009 survey will be available online on November 6th, 2009.
Housing values in the Royal LePage 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 1970s.
About Royal LePage
Royal LePage is Canada's leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage believes in the importance of giving back to the community and is the only Canadian real estate company to have its own charitable foundation. The Shelter Foundation is dedicated exclusively to funding women's shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol "BRE.UN."
For more information visit www.royallepage.ca.
SOURCE Royal LePage Real Estate Services
For further information: For further information: Jeremy Twigg, Fleishman-Hillard Canada, (604) 688-2505 ext. 232; Tammy Gilmer, Director, Public Relations and National Communications, Royal LePage Real Estate Services, (416) 510-5783