A renewed sense of optimism leads buyers into the market, resulting in multiple offer situations being seen at certain price points
REGINA, July 13, 2017 /CNW/ - According to the Royal LePage House Price Survey1 and Market Survey Forecast released today, the aggregate2 price of a home in Regina dipped slightly in the second quarter of 2017, falling 1.3 per cent year-over-year to $325,927.
When broken out by housing type, the median price of a standard two-storey home within the region grew by 3.1 per cent year-over-year to $404,234. During the same period, the median price of a bungalow slipped 1.7 per cent year-over-year to $293,572, while the median price of a condominium saw a decline of 8.9 per cent to $241,482.
"Regina's real estate market continues to tread water, as prospective homeowners patiently wait for the region's resource-based economy to rebound," said Mike Duggleby, broker and managing partner, Royal LePage Regina Realty. "Although a considerable amount of sales activity has been shelved for the better part of two years, purchasers have recently begun to be more optimistic, entering the market in order to capitalize on the region's depressed home values. This has resulted in multiple offer situations being seen at certain price points."
Looking ahead to the end of the year, Royal LePage forecasts that the aggregate price of a home in Regina will decline by 2.0 per cent year-over-year to $331,560, as the region's real estate market remains subdued under the weight of weakened commodity prices.
"While pricing will likely continue to decline slightly when compared to last year, there are many reasons to believe that Regina's real estate market is seeing the light at the end of the tunnel," Duggleby added. "Major economic indicators are trending upwards, and sales activity continues to gradually rise, signifying that price increases may just be over the horizon."
Nationally, Canada's residential real estate market posted strong home price gains in the second quarter of 2017, with the majority of metropolitan markets across Canada displaying expansionary trends. During the quarter, the Royal LePage National House Price Composite showed that the price of a home in Canada increased 13.8 per cent year-over-year to $609,144. When broken out by housing type, the price of a two-storey home rose 14.6 per cent year-over-year to $725,391, while the price of a bungalow increased by 10.7 per cent to $511,965. Over the same period, the price of a condominium climbed 13.4 per cent to $397,826.
"Following a period of unprecedented regional disparity in activity and price appreciation, we are now seeing a return to healthy growth in the majority of Canadian housing markets," said Phil Soper, president and CEO, Royal LePage. "The white-hot markets are moderating to very warm; the depressed markets are beginning to grow again. Canadian housing is in great shape – a statement that I certainly did not make last quarter."
"The rate of national house price appreciation that we experienced in the second quarter continues to be above what we would consider a normal range, driven primarily by very strong year-over-year price growth across much of Ontario," continued Soper.
Looking ahead to the remainder of the year, Royal LePage forecasts that the national aggregate price of a home will increase by 9.5 per cent in 2017 to $617,773 when compared to year-end, 2016.
About the Royal LePage House Price Survey
The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 53 of the nation's largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, Brookfield RPS, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.
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 17,000 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 symbol TSX:BRE.
For more information visit: www.royallepage.ca.
1 Powered by Brookfield RPS
2 Aggregate prices are calculated via a weighted average of the median values of homes for reported property types in the regions surveyed
SOURCE Royal LePage Real Estate Services
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