CALGARY HOUSE PRICES STABILIZE IN THE THIRD QUARTER ACCORDING TO ROYAL LEPAGE
SURVEY

Balance returns to real estate market, prices back to where they were a year ago

CALGARY, Oct. 19 /CNW/ - The Royal LePage House Price Survey released today showed year-over-year house prices in Calgary stabilized in the third quarter and now stand close to year-ago levels. 

"After peaking in early 2010, house prices in Calgary softened in the third quarter," said Ted Zaharko, broker and owner, Royal LePage Foothills.  "In spring 2009, we began to experience a 'snap recovery' as buyers took advantage of the opportunities that the 2008 downturn provided.  That rapid recovery drove prices up and continued until the spring of this year.  Prices have since fallen from their early-year peak as stability and balance have returned to the market." 

Year-over-year prices for detached bungalows rose 2.7 per cent in the third quarter to $412,744.  Meanwhile, year-over-year prices for standard condominiums and standard two-storey homes declined slightly, by 1.1 per cent to $246,656 and 1.0 per cent to $410,489 respectively.  The survey also revealed a decline in year-over-year unit sales and a significant increase in inventory levels.

"The housing market in Calgary is a unique one," said Zaharko.  "When conditions such as low interest rates or price decreases occur in Calgary, the market reacts quickly and in a significant way. However, even though the downturn did have a considerable impact on us, the Alberta economy and its housing market have always been, and will continue to be, among the strongest in the country. In fact, according to the latest TD economic report, Alberta is expected to lead the Canadian economy through 2011. In the meantime, as we approach the end of 2010, expect to see the Calgary housing market stabilize and balance out."

Nationally, Canada's residential real estate market saw year-over-year growth in the third quarter as fears of a double dip recession or a housing bubble faded. House price appreciation slowed to a more modest five per cent in the quarter, which is historically typical of balanced real estate markets.

"Most Canadian housing markets cooled in the third quarter. In fact, the year is unfolding much as we predicted, with the unusually active first half of 2010 giving way to slower markets in the later part of the year.  Helped by very low rates in a competitive mortgage financing market, the third quarter was slightly stronger than anticipated, on new demand fuelled by improved affordability in many regions," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. Looking ahead, it is very unlikely that the period from now to year-end can keep pace with the activity levels posted in the overheated market of the final quarter of 2009."

In the third quarter, the average price of a detached bungalow in Canada was up 4.6 percent to $324,531, compared to a year ago. Over the same period, standard two-storey homes rose 4.4 percent to $360,329 while standard condominiums rose 3.9 percent to $226,481.

"House price growth now sits just below the long term annual average of approximately five per cent, but once this is adjusted for inflation, which is very low and expected to continue to be that way for some time, appreciation is right on track.  Canadian homeowners will be pleased," said Soper.

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 2010 survey will be available online on November 5^th, 2010.

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 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 is the only Canadian real estate company to have its own charitable foundation; the Shelter Foundation which 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, Real Living, 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.

For further information:

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

Tammy Gilmer
Director, Public Relations and National Communications
Royal LePage Real Estate Services
416-510-5783