Market remains resilient despite struggling oil sector and inventory surge
EDMONTON, July 14, 2015 /CNW/ - The Royal LePage House Price Survey and Market Survey Forecast released today showed moderate year-over-year price increases across all housing types surveyed in Edmonton.
Detached bungalows rose 4.1 per cent year-over-year to an average price of $364,942 and standard two-storey homes increased 3.3 per cent to $384,250. Standard condominiums also saw their average price appreciate, rising 4.4 per cent year-over-year to $246,812.
"Average home prices have moderated after rapid price appreciation throughout much of 2014," said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate. "The local economy has taken a bit of a hit in the wake of the slowdown in the Alberta oil patch, and the corresponding drop in consumer confidence has caused many to delay selling or buying a home."
According to Shearer unit sales volumes have been down for most of the year, with the exception being an above average June.
"Inventory levels are significantly higher compared to this time last year," added Shearer. "We have almost 2,000 more active listings sitting on the market right now than we did 12 months ago."
Looking ahead, Royal LePage forecasts an average year-over-year price increase of approximately 2.0 per cent in the Edmonton housing market for 2015.
Shearer says that the outcome of the upcoming federal election, along with the recent appointment of Alberta's new NDP government will influence the local real estate market. "If the climate for business is not right then some investors say they may pull out of Alberta, although I suspect we will not see that sort of upheaval. Right now it is too early to tell," he concluded.
Nationally, against the backdrop of mixed economic signals at home and abroad, Canada's real estate market remained healthy in the second quarter of 2015, with solid national average price appreciation across housing segments. Furthermore, the combination of high sales volumes and vigorous price appreciation in Canada's largest cities has put the national residential real estate market on track for a record year in terms of total sales. With most Canadian real estate markets across the country advancing modestly, and some rapidly, Royal LePage advises that a further interest rate cut by the Bank of Canada could over-stimulate markets such as greater Toronto and Vancouver.
During the second quarter, the average price of a home in Canada rose between 3.9 per cent and 7.5 per cent year-over-year in the second quarter. The detached bungalow segment had the highest national increase, rising 7.5 per cent year-over-year to $438,938, while standard two-storey homes appreciated 6.8 per cent to $471,002. During the same period, the average price of a condominium rose 3.9 per cent to $268,583. Looking ahead, Royal LePage forecasts that the average price of a home in Canada will increase 6.1 per cent for the full year when compared to 2014.
"The robust national average home price increases that we have seen in the second quarter are heavily influenced by activity levels in Toronto and Vancouver," said Phil Soper, president and chief executive officer, Royal LePage. "Looking to Canada as a whole, 2015 is shaping up to be a record year for housing, despite the cloud of economic uncertainty caused by low oil prices and twitchy global economies."
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 website at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the second quarter of 2015. A printable version of the second quarter 2015 survey will be available online on August 14, 2015. 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 over 16,000 real estate professionals in more than 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 and 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 symbolTSX:BRE.
For more information visit: www.royallepage.ca.
SOURCE Royal LePage Real Estate Services
For further information: Eddie Tabakman, Kaiser Lachance Communications, 604-637-6664, [email protected]