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Home prices have doubled in decade

A majority of Canadian homes have nearly doubled in value over the past decade, though price appreciation in the country's urban markets has been more pronounced, a Royal LePage survey has found. The country's most impressive gains were found in Edmonton, where the average price of a condominium tripled in price in the city and more than quadrupled in the suburban areas, Royal LePage's 'Urban vs. Suburban' survey revealed.

The survey examined 32 urban and 26 suburban markets across the country and found the average price of a standard two-storey home in an urban neighbourhood appreciated by 129.2% to $522,999 over the last decade, while the same property in a suburb rose by 110% to $334,380.

The highest price appreciation was seen in Castledowns, Edmonton, where the average price of a condo rose 633%. A condo in the Edmonton suburb of Sherwood Park increased 416%.

"A look back at the last 10 years in Canadian real estate growth reveals that typically, home prices in urban markets have grown faster than those in the suburbs, with both areas showing impressive appreciation," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "This decade has provided Canadians with the historically longest housing market expansionary cycle in the nation's history."

He said strong demand for amenities and limited supply in city centres have spiked prices upwards in urban areas, while affordability and spacious yards continue to attract buyers to the suburbs.

Factors driving price appreciation in the country's urban neighbourhoods generally included limited property availability, a desire to be near the workplace, diverse amenities and, more recently, the rising cost of fuel.

Suburban price appreciation has mostly stemmed from the relative affordability of areas that are removed from the city core. The availability of affordable, larger properties with garages and more green space also appeal to buyers.

In Montreal, the combination of a shortage of inventory and virtually no space for new development led to the significant gains that the city experienced over the past decade.

A standard two-storey home in Montreal rose 120% over the last 10 years while homes in the outlying areas saw an average increase of 107%, the study reported.

In Toronto, a two-storey home within the city rose on average by 89%, while the same home in the suburbs rose by 82%.

The rise was more rapid in Calgary, where the same home rose by 207% within the city and 170% in the suburbs. "Calgary residents have seen boundary expansion in several urban communities, causing a steady increase in average prices during the entire decade, especially in the last 24-month period," the report said.

See the full Royal LePage's 'Urban vs. Suburban' survey »

June 3, 2008 in Canadian Real Estate Market | Permalink

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Comments

"The average price of a standard two-storey home in an urban neighbourhood appreciated by 129.2% to $522,999 over the last decade".
Hurrrraaaaaaaa,next decade every homeowner in Canada will be milionare!But can you than find 83,000 buyers in GTA (like last 4 years trend) to keep sales steady? I don't think so..
"Thanks God",40 years mortgage and from Central Bank low interest rate now again will decreased to 2.75%.But resale party is OVER.
Resale Trend in 2008 shows 78,800 resales with 5% increased price, and everybody knows that from next year Central Bank will raise interest rate at least 1.25 %, plus higher unemploement rate in Ontario 6.9%- 7.0%, plus again 4% increased price, we can expected 69,000 resales in 2009.
About 2018 with The average price of a standard two-storey home in an urban neighbourhood will appreciate by 129.2% to $ 1,250,999 over the next decade? Than Resales in 2018 will be about 400 two-storey houses in GTA.
Very Good Trend?

Posted by: | Jun 4, 2008 12:23:31 AM

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