Inventory of detached family homes rises, as first time buyers and
retirees opt for condos
FREDERICTON, July 9, 2013 /CNW/ - The Royal LePage House Price Survey
and Market Survey Forecast released today showed modest year-over-year
price increases across all housing types surveyed in Fredericton.
Standard two-storey detached homes saw the greatest increase, rising 2.3
per cent to $220,000. Detached bungalows increased by 1.0 per cent to
$207,000, while standard condominium prices remained relatively flat,
posting a 0.6 per cent rise to $158,000.
"The overall market is still stable, although less buoyant, than we've
seen in recent years due primarily to decreased employment in a number
of sectors," said Lincoln Thompson, broker and owner of Royal LePage
Garden Realty. "Last year's changes to Canada's mortgage lending rules
have also contributed to slower price gains, in particular with less
first-time buyers now coming to the table."
"Activity in the condominium market, however, remains lively with the
city's recent addition of two new luxury condominium properties," added
Thompson. "Retirees, first-time buyers and city newcomers are all
responding to the appeal of low maintenance condo living."
Thompson noted that movement by retirees to the condominium category is
creating an upward trend in inventory for detached family homes.
For the balance of 2013, Thompson expects average home prices to rise by
3.0 to 4.0 per cent. As well, he expects inventory levels to increase
by as much as 11.0 per cent by year's end, which he attributes to an
overall decrease in population.
Nationally, in the second quarter, standard two-storey homes and
detached bungalows both showed a year-over-year average price increase
of 2.7 per cent to $419,614 and $386,547, respectively. Average prices
for standard condominiums showed a more modest increase during the same
period, rising 1.2 per cent to $248,750. Royal LePage forecasts that
house prices will see modest gains throughout the remainder of 2013,
projecting a 3.0 per cent increase for the full year when compared to
Dialogue concerning the direction of Canada's housing market has
remained front and centre in recent months. Changes to Canada's
mortgage lending rules in mid-2012 coupled with concerns about consumer
debt levels, housing affordability in cities like Toronto and Vancouver
and continued international economic uncertainty have prompted a number
of analysts to forecast large downward price adjustments.
"As we have stated consistently since the current market downturn began
late in the second quarter of 2012, this is a normal cyclical
correction which brings fewer home sales and softer prices. Those
hoping their predictions of a bursting bubble and cataclysmic drops in
home values will come true are out of luck again," said Phil Soper,
president and chief executive of Royal LePage. "Price appreciation in
most markets across the country has been well below the long-term
average for Canada and will remain so through to the end of the year.
We expect to see the number of homes trading hands to begin to rise
slightly on a year-over-year basis in the second half of 2013, with
price softness continuing until mid-2014, at which point we'll see an
emergence from the current cycle."
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 2013. A printable version of the
second quarter 2013 survey will be available online on August 6, 2013.
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
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
14,500 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 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 symbol TSX:BRE.
For more information, visit www.royallepage.ca.
SOURCE: Royal LePage Real Estate Services
For further information:
Kaiser Lachance Communications
Director, Global Communications & Public Relations
Royal LePage Real Estate Services