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Prices Up - Market Down
Toronto's average price increases 11.3 percent to $432,679.
Canadian home-price increases moderated in the first quarter, but remained solid due to a strong economy, high immigration levels, and relatively low interest rates, according to a report released by Royal LePage Real Estate Services. Nationally, the average price of a detached bungalow climbed 8.3 percent to $336,834 in the first three months of 2008, according to their latest House Price Survey.
The price of a standard two-storey homes rose 7.1 percent year-over-year to $400,647, on average, and a standard condominium increased 6.9 percent to $240,423.
While those increases were down from the double-digit rises of previous quarters, they still stand in stark contrast to the hobbled U.S. housing market.
A crisis that began in the U.S. subprime mortgage sector has eroded the value of U.S. homes and threatens to push the country into recession.
"We know now that the Canadian real estate market has followed a markedly different path from that of the United States," said Phil Soper, president and chief executive of Royal LePage.
"While Canada will not escape the negative impact of a troubled American economy, Canadians' home equity should remain safe, as the market moves into a period of slow growth, but growth nonetheless."
Looking around the country, Saskatoon and Regina in the province of Saskatchewan had the hottest markets, with average prices for a detached bungalow soaring 50.3 percent to C$226,250 and 49.6 percent to C$158,500 respectively.
"In Saskatchewan, gold, diamond and uranium mining, along with prospering agriculture industries, have retained many would-be out-migrates, and the more moderate cost of living has also lured skilled workers from Alberta," the report said.
Despite the strong oil and gas economy in the province of Alberta, increases in home prices there have moderated from the frenetic pace of the past few years.
The price for a standard detached bungalow in Edmonton, Alberta, actually fell by 4.9 percent in the quarter to C$330,000.
In Calgary, Alberta, Canada's oil industry capital, the price for a standard detached bungalow climbed 9.9 percent to $442,852.
Vancouver, British Columbia, site of the 2010 Winter Olympics, remains Canada's most expensive real estate market. The price of a standard detached bungalow jumped 11.4 percent to C$852,750.
In Toronto, Canada's largest real estate market, the price increase was 11.3 percent to $432,679.
The price increase in Montreal was below the national average, rising 3.9 percent to $227,799.
The report noted that record snowfall in Central Canada left many city streets and sidewalks almost inaccessible to potential homebuyers during the quarter.
See the Royal LePage Market Report »
April 5, 2008 in Canadian Real Estate Market | Permalink
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Comments
How it is possible that prices on real estate market went up about 11 % and overall sale of houses decline about 27% in Toronto. And now is buyers market?
Posted by: Torontian | Apr 8, 2008 3:51:08 AM
It is necessary to understand the connection between economy condition and real estate market. How it is possible that prices on real estate market went up and overall sale of houses decline. There are more reasons why is it so. High prices of houses are result of longer-range increasing on real estate market. But now situation should change. Prices of houses reach the top and less people are interested in buying houses.
Posted by: Toronto real estate agents | Apr 6, 2008 9:27:22 AM
