 鲜花( 0)  鸡蛋( 0)
|
Canada's housing market both vigorous and stable
0 F: c) C+ m/ D7 D* F# _' Y# \6 j; C6 E& ?5 p" B9 r8 | I
- Country's market poised to show growth throughout 2006 -
) w) i6 U7 u0 z" Q7 [4 ~
* K0 ]7 {& w7 o2 z c4 n7 h TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market
5 b5 B% e7 J' X% \& Q D5 pexhibited moderate price increases and stable unit sales during the third! r: K% n3 w: J8 k* f ]
quarter. Wide regional variances continued to be the dominant characteristic0 e! R9 S0 O: J8 V# ~0 E# K
in the market, exemplified by frenzied levels of activity and double digit. _- x0 f/ h) T1 g: ]6 @
price gains observed in the energy and commodity rich Western provinces, and; y' q( _0 h+ _, j
more reasonable sales volumes and moderate price appreciation in Ontario,
1 _( h1 i& \ D t* I) r) EQuebec and Atlantic Canada, according to a report released today by Royal6 d* I7 }/ {) C8 Y5 T1 W; B. o
LePage Real Estate Services.. s" w/ G2 u: |) M0 \5 G/ Q% M: [
. @! \) G2 ]+ `8 b
Nationally, market trends established through the first three quarters
: c; x' B# U/ u3 O5 @* G8 F# `7 V* _are forecast to continue for the remainder of the year. Robust economic
- e8 d- c9 U" Econditions, low unemployment rates, modestly growing salaries and wages, and7 M e a! c; R7 Y
sound consumer confidence contributed to the overall strength of the
6 J% a E2 e. P9 _residential real estate sector.
% @) w9 c8 w4 g# z- T# y# b# W
! K0 d! g6 ]$ y Of the housing types surveyed, the highest average price appreciation* \, k' L4 x. N6 z3 p
occurred in detached bungalows, which rose to $300,365 (+16.3%)
+ i# J" V3 X+ {year-over-year, followed by standard condominiums, which rose to $211,562
% o' r7 s2 C; Y* K6 s; U. t(+14.2%), and standard two-storey properties, which increased to $365,380
" q, H: C/ ^7 A(+13.2%).' }5 }* f7 ~9 }8 K2 U
! S3 f* m+ y) | "Canada's sturdy housing market continued to demonstrate steady growth. S. K8 p2 ^% g0 Q
during the third quarter. For all but the west, we have moved on from the( `- P9 j, b& B9 @) x$ x
frenzied expansion that characterized the first half of this decade, and are% j6 C5 {7 B( B+ S: N4 X$ H( ]6 l
poised to show continued growth at a more moderate pace," said Phil Soper, a- q7 ?# H5 \3 k- h# f- G2 }- ^5 j
president and chief executive officer, Royal LePage Real Estate Services.* Y; O" o' V" l4 M# a8 G2 H8 X
"Gone is the sellers' market that we have lived with for some years. We6 T$ D* {; }5 r0 a* Q% Z
welcome the more reliable conditions that are characteristic of a healthy
; `4 F4 ?/ l4 }* E) Fbalanced market."
) j+ Q7 e* `+ f+ [! U) q# L+ g
8 A+ D- e' l9 B: m Despite the double-digit rise in average national house prices,
6 r( O$ a+ j: hconsiderable regional variances were exhibited again this quarter. The shift
* d3 K- V, B" [9 y! K6 ^: eto balanced market conditions, which began in late 2005, has continued
6 M( j" y( r* v+ A$ Vthroughout most of the Central and Eastern regions of the country. In the core
2 A0 l, h& ]1 U) _* zenergy producing western provinces, the combination of very high in-migration,# R1 R1 h, W7 v, ?3 z, s
manageable affordability, and a shortage of inventory has driven record
8 E$ q; s% d; X7 zbreaking price appreciations.
, Y* @) o2 c! b: F; }! b# W) G) J( e5 I/ N: T8 Y
Echoing the second quarter and supported by Alberta's rapidly expanding3 o: O9 x+ Q" w& n1 \
economy, Calgary and Edmonton led the charge of Canadian cities with the+ Y$ B. y1 G' J6 [0 J
largest house price appreciation in all housing types surveyed.2 _# Z A: C4 t# r" B
`) s1 [" v: Q. d! ~0 u5 x
In Ottawa and Toronto, growth remained steady, supported by solid* d5 r+ F) U# k' k$ p% Q
economic fundamentals, an increase in available inventory and strong consumer: ?" Z! J+ `- b8 O- V0 T
confidence. While the pace of price appreciation in Ontario leveled off
9 |: w4 p7 O2 n* g& n1 D" Vslightly, the province's real estate market remains poised for modest growth.
! O2 b4 N7 j- i, u7 L3 d7 IIn Atlantic Canada, new housing and condominium construction offered buyers
+ g- _/ t4 d( `% `% S8 sgreater selection at more competitive prices, resulting in a slower rate of
$ m% w2 u$ Z' fprice appreciation when compared with 2005.* z6 }7 k. j7 s
9 \ i0 r9 X- F9 F! g While the pace of growth in Canada has slowed, the domestic housing
3 f: U0 t4 v V* X7 [- xmarket is expected to outperform the American market. The economic and3 I& x5 l) U K1 i! ]( C, M% [" o$ M
financial fundamentals driving the residential real estate sector in Canada' M1 V! T! g% s) b
are markedly different than those found in the United States.
3 B% ]! D, Z$ _- p+ d0 u6 h. i
) `. O' X; q( p+ L" `+ L Added Soper: "Canada's housing market is likely to outperform the, n S) \- x1 l7 j5 c4 U
American market through 2007. A number of factors are working in Canada's
3 U3 `# ~3 k7 L6 {$ y. v: Nfavour, including healthy personal and governmental debt levels, the% t& @; A! v& z( V
relatively modest rise in interest rates in our country, and general$ n( e+ \' F; @$ c
affordability in our major cities. In addition, Americans are now seeing the' u% Z/ C, w) w6 K) n) I: }
downside of a tax system that encourages maximum homeowner leverage, and
F; A# Y2 W) N3 C, xaggressive financial products such as zero- and negative-amortization
- `8 @9 y! u- k0 c8 r; S& Q0 i0 F6 smortgages that work only in a high price growth environment."
/ R8 o; s" M9 f0 _8 U
! _! D% X) o9 x9 y <<
( P/ I8 C3 N2 L& V, D& W REGIONAL SUMMARIES
' q3 N: V X. @% k >>
, d) o7 c1 n' b4 _- n, \0 y! c2 ?, `" W
Balanced conditions continued to characterize the housing market in/ l: {1 h$ f, x" r
Halifax, as significantly higher inventory levels helped to moderate the rate% q3 Y: G) ~! D2 a" K! _# [9 R
of price appreciation. Buyers were increasingly choosy, taking more time
% g8 V# r0 \% _+ [9 k7 G5 plooking for newer, low-maintenance properties that were not in need of
. a* \# ~" O& n! k) ]+ Jrenovations.
) D* M" m) }" ]& W* S! d
: Q1 `7 }) E7 _4 _* d( b The housing market in Moncton remained healthy and strong as a slight
* a$ g) X. c5 C9 yincrease in inventory helped to moderate the rate of price appreciation
: a* {& p9 J- o2 b& pcompared to the same period in 2005. Activity was brisk throughout August and! L% }! \" y5 |
September and is expected to remain this way through the fourth quarter.
# M! p8 L2 n) g6 n" j9 z. E1 N+ i; P$ w/ V; p$ E0 D- g' l2 Q' L
The housing market in Saint John underwent its traditional summer
6 ~+ ]" A- R% ?* d6 x% Rslowdown in the third quarter, with activity picking up towards the end of the( S( Y# h$ q) s7 p. N: ]/ b4 |
quarter. The local economy continued to thrive, as construction on a new
7 n7 f8 m5 ~* y& b$ D600,000 square-foot shopping area has begun, bringing several new box stores- d3 Q/ @& L6 |3 t
to the area. Buyers have begun seeking less expensive fixtures for their homes* r( g' U* ?( E( G+ r# B: }
and are instead opting for more affordable housing options.
- {$ L, F+ G+ ]# x5 o, _0 j( Y! w
p9 ]4 K. L- e( A In Charlottetown, the housing market started to move towards balanced
0 S' x; ?% P$ econditions, as some sellers had to begin to lower the asking prices on their/ m$ v& M+ l8 J4 J9 W) {; @% z
homes to make them more competitive. Activity from out-of-town and US buyers
* y" p. W& z) y. ?was down slightly compared to 2005, likely attributable to the strong Canadian/ h* R- \" c* c+ H4 a' I, H
dollar. Inventory levels began to creep up in the third quarter, providing
. A3 J, D8 y: k# |buyers with more options when looking for a home., K! z* y0 G/ {5 O, o1 g
" C: E9 S6 A4 |% S8 n
Activity in St. John's slowed slightly in the third quarter, particularly
5 o8 q) H+ F A8 S6 ?1 K2 Camong higher-priced properties, where there was a slight over-supply of homes/ N+ P1 G3 e, h
priced over $200,000. Listing periods have increased when compared with 2005,6 I- Y' L( F* i4 e" u
as some of the pent-up demand that had characterized the market over the last
( |2 _; h: V& V" ofew years has been satisfied, resulting in more normal, balanced conditions.
5 ^9 z0 L I6 f, g# m+ ~
' Q% c$ x7 z* _& k Montreal's housing market recorded modest increases in average house; J0 y* F% A* |* Q
prices, due to a slight seasonal slowdown in the third quarter as inventory
( B+ b5 I- j" m1 I, l; Olevels rose. Part of this can be attributed to the fact that many renting
+ _2 b# _7 r9 e2 Y; Gfirst-time buyers were motivated to close on the purchase of a home by July 1,$ {# t/ L1 o) a: J6 ^
when rental leases expire in Quebec. Once this date has passed some of the
$ d/ v2 d4 o2 p y2 _pressure is taken off the market, allowing buyers to visit more homes before
& J: l, }) h0 W5 n7 Fmaking a purchase.+ L. P% ^' f$ c l5 Z3 m \! k$ c( `
1 i/ G t. g/ d# S Ottawa held its position as one of the country's most stable housing( c( a9 C( ~/ T, L3 n* {; i: b& E
markets in the third quarter, reinforced by a vibrant local economy and strong/ [' ^8 L/ D, T K8 d
confidence, resulting in modest increases in average house prices. The city
- S$ y9 V P! n; {( F0 z$ S' dcentre remained a bright spot in Ottawa, with homes in this area attracting
8 ]. R- y0 `! C& u: M8 M5 X+ eattention due to their convenient location and proximity to downtown
' |7 w5 J- d* hamenities.4 K- g; L/ e( v9 q
! ]# {. k) i' e7 |& x7 G The housing market in Toronto sustained healthy activity levels
7 [5 }* T& _4 s2 n: g/ Rthroughout the third quarter, as a strong economy helped to maintain demand1 Z( u# W5 v1 \& H
across the city, causing average house prices to rise moderately. Toronto has
: U& l& k. {4 m2 O* z* N3 kcontinued to experience modest growth in average house prices, and has been
/ p- Y0 d) Z* v' X& Tdriven primarily by purchasers who are buying homes as their principle
! O: }5 k: Z, q' Y" y/ K/ p' Vresidence, rather than for investment.
& }$ J. q# |9 C5 u* y' O) ^: U( P& `' C' Z% ]
The vibrant Winnipeg housing market continued to show its strength as% {/ ]! D8 W3 k& \6 C
house prices rose during the third quarter. The booming local economy resulted
7 t% S: p2 x- X9 Hin a historically low unemployment rate, helping to bolster consumer
4 |$ l* Q1 t% }5 e. o& S g1 ^$ Wconfidence and Winnipeg's ranking as the city with the lowest capitalization8 n4 ~7 R/ a- ?. d: C( x) H1 F
rate among the country's larger cities - helped to encourage buyers to enter
, V, ~0 ~* I: O5 s: q5 Ythe market., J, u+ ?! F& ^4 h) X( o7 K6 c ^9 S
1 y7 O8 w( ^( G# `9 a
In Regina, the market experienced a slight seasonal slowdown through9 O ?# Q0 w- \+ t
July, as there were fewer purchasers in the market due to summer vacations. In
7 M1 |9 e& A7 E0 d5 D1 x- K- t) XAugust, activity resumed to the busy pace previously seen in the spring3 l+ g. D, ?* _/ i* z$ [ u8 B" z
months, as the influx of purchasers made it more difficult to find a home due
' L, ~: G8 k; p1 }5 f0 Z. pto the shortage of available inventory.
7 k" U( q$ R; _3 h! V/ S8 W" j
! Y% }, p! I8 M: L Activity in Saskatoon remained brisk as the market maintained its8 T# T2 O- n, e+ L9 `
momentum from the busy spring sales period. The economy in Saskatoon remains
) P& X' {. P8 Q9 Xvibrant, as employment opportunities are abundant with many businesses# w! Z, H# |6 r: i
struggling to make hires and having to recruit outside the province.9 [* S+ Q8 @ x9 {) J f2 X
6 ^ \( d: `3 |
Calgary's housing market recorded blazing average house price increases$ Y$ b3 k* L: p8 ]: ~' W
in the third quarter, in all surveyed categories. The burgeoning economy, low
8 ~" w, ?1 E9 D6 W: v+ F9 ~unemployment rates and low inventory levels remained the leading factors that
7 v# Q c: a( h, F/ ?, [ Upressured Calgary's house prices upwards. However, regardless of the soaring6 F: U( K* I3 |! m6 D
prices that characterized the market - even during the typically slower summer1 A4 I3 c" P) k; Q! h
season - it is expected that activity will become slightly more balanced, as' x3 x* d) D) J# g4 d8 S6 p
buyers are becoming more reluctant to participate in the frenetic activity.4 C6 Q, ?: u/ O, J" ?
: x$ O3 T0 ?! k: r$ _) ^
Edmonton's booming local economy continued to thrive in the third quarter0 K0 z* M/ D9 V5 I- x; r
as activity in the oil sands north of the city continued to flourish. Edmonton9 f4 ]$ j1 G7 O+ i( B
remained the hub of activity for those coming to work in the oil industry,
0 x& Z# }6 Z8 U# t6 Qmaintaining tight inventory levels across the city, resulting in prices
( @! t: T: R* a s* T/ d$ ^! Xincreasing at record levels. However, as inventory levels continued to improve; T+ A0 z, a3 t/ Q$ c' S7 A
in the third quarter the rate of price appreciation should moderate slightly
! A; Y w6 [& ~2 c$ Ztowards the end of 2006.
; H9 F* J& g+ d, f; C& g. H+ e# Q. X2 M% ^
While Vancouver has seen a slight reprieve from the severe shortage of) M% E( X/ \3 y7 L
inventory that had previously characterized the market, supply is still unable
9 `6 l$ m6 A4 @/ z; Y! q5 qto meet demand, driving house prices upwards. Vancouver has a very diverse
. f6 G! A! l7 I% D2 ]0 ]0 ogroup of active buyers - from first-time home buyers to baby-boomers to
! {- _ f' }$ fforeign investors - all of whom fuel the demand for houses, placing added
2 C F( Z1 ~; ?pressure on tight inventory levels.
4 T- S- U6 m4 j
( k9 X) ^( e9 P Victoria's market is vibrant and supported by strong economic1 g0 g% r1 ]4 a6 r" @7 ^" z1 }4 e
fundamentals, fuelled by a booming tech sector and a migration of young people; [2 j' d( p6 b4 ~& P, n) t
into the city that has continued to support the area's house price increases;
5 S) K4 H9 L- N# B8 t Vwhile increased inventory levels have afforded buyers more time when searching
2 `( U6 ^. @) F8 [1 S+ g8 Hfor a home, helping to normalize the market's pace.
4 H* f* W, |" ?) o' T( R, t
! [/ Y0 k8 |' } <<. o; i* P% A# V+ ?
Survey of Canadian Average House Prices in the Third Quarter 2006
$ ^6 t+ S- w' s9 ~
$ j. G# N" @+ G" C- b6 J8 ?7 M: l -------------------------------------------------------------------------" q% B/ Y) ^% Z( U, g
Detached Bungalows Standard Two Storey' i2 s) B/ M. {% H
-------------------------------------------------------------------------
+ b$ J/ @7 v; E+ |: s/ `' W3 T 2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q3
& n R/ v! i3 \ Market Average Average % Change Average Average3 h8 u# L# P1 x, |% E# v
-------------------------------------------------------------------------2 @1 G, ~; ?3 s! L0 s
Halifax 186,333 173,333 7.5% 198,667 199,0005 m( x; a; Y* w8 Y' \- y
-------------------------------------------------------------------------
- R. h* R* c+ P( d2 ], z2 G Charlottetown 145,000 141,000 2.8% 175,000 170,000
/ G0 M5 }) j3 n9 X/ w2 n# u+ l -------------------------------------------------------------------------
) J. \, a8 ]6 U3 |1 U Moncton 135,000 127,000 6.3% 129,000 123,000
# O& i3 K3 c9 i -------------------------------------------------------------------------
/ F' v/ T% v9 `; J: ^" Z: X7 v Saint John 141,200 142,900 -1.2% - -- s0 L' A+ b5 _' o8 e! Z6 w3 {5 X
-------------------------------------------------------------------------4 U+ p+ Y& s% \# ]
St. John's 143,667 142,667 0.7% 200,667 202,333
0 z1 H1 L6 b8 _, \* [ -------------------------------------------------------------------------
% n( X8 n. \. }. m% L Atlantic 150,240 145,380 3.3% 175,833 173,5833 q9 R$ _+ X8 E/ F. g# Y8 Q& S
-------------------------------------------------------------------------9 c! ?8 B2 p. W7 Q7 R
Montreal 213,691 203,500 5.0% 321,141 316,185
$ F& l, X( m6 D1 B! \, j1 A1 z ------------------------------------------------------------------------- h5 A% ?1 U* d* ?1 R1 G
Ottawa 290,083 278,417 4.2% 285,667 273,250( J: c/ f- K9 V& E
-------------------------------------------------------------------------5 k: H0 f; C" _ x. M
Toronto 373,368 355,882 4.9% 481,523 474,766
6 I# N! }8 V6 G! C -------------------------------------------------------------------------5 i; _: `" J( F% Y
Winnipeg 181,579 159,860 13.6% 202,337 180,707
! w x, P6 L6 ?+ A8 G" {5 C -------------------------------------------------------------------------
. T- u' m% X/ ?" `: f Saskatchewan 170,667 156,083 9.3% 182,600 166,500
5 i3 |7 P; P1 @: c: q. M/ \ -------------------------------------------------------------------------9 n' A# f5 _+ } o' T
Calgary 395,067 252,411 56.5% 405,778 264,389
6 B# b. @7 C0 k/ w4 D -------------------------------------------------------------------------4 J! \1 R& { o5 Y: _9 T+ I
Edmonton 286,857 194,857 47.2% 316,429 206,714: k' S. v3 `+ k* q
-------------------------------------------------------------------------
' i; t3 ^2 _8 a+ p4 w Vancouver 704,250 601,000 17.2% 794,000 697,500
; ^9 T4 b4 {: x -------------------------------------------------------------------------
' Y {0 I8 v8 r7 X R) } Victoria 375,000 348,000 7.8% 403,000 391,0009 b9 W8 q4 N+ J
-------------------------------------------------------------------------$ x* \- x- {+ i: p' C
National 300,365 258,202 16.3% 365,380 322,860
: |: C9 b" j6 G' \& c0 o* \5 W: H -------------------------------------------------------------------------
8 ?3 M! K& l, m; Y. O/ [# v4 {/ E' I' H2 p& d0 W5 v
-------------------------------------------------------------( ?" w7 T3 @' i: D" p. i* j9 r
Standard Condominium, B" n/ T! Y% z8 L
-------------------------------------------------------------
3 A- P( T# f% E( ~ M( E# j) a 2-Storey 2006 Q3 2005 Q3 Condo
4 z; _5 p! e- Z! M Market % Change Average Average % Change
! ^. }+ ]) z) |6 [+ ?3 q3 C -------------------------------------------------------------" [' T! Q$ g# a" t( [5 D; \
Halifax -0.2% 142,000 103,000 37.9%
8 I: v+ f; g* J4 g7 S, W -------------------------------------------------------------. W4 J8 H+ j {3 N
Charlottetown 2.9% 98,000 98,000 0.0%
1 f3 w- N. f7 ^ w -------------------------------------------------------------
1 m5 l, f# K" d( B5 \ Moncton 4.9% - - N/A2 a+ n( l' C. {% f1 i# W( v* [
-------------------------------------------------------------& t. I' q0 ]( F2 U0 L$ n
Saint John N/A - - N/A( X( `' M# Q3 i* `% e
-------------------------------------------------------------$ ^/ V! o0 V5 |5 _
St. John's -0.8% 146,333 145,667 0.5%
4 h5 `* o! F9 ^1 L0 A5 o -------------------------------------------------------------
" o; o3 d8 A$ Z9 j Atlantic 1.3% 128,778 115,556 11.4%
) c/ [4 W6 V* ^3 V3 B' m6 Q0 d& q -------------------------------------------------------------
d5 N @ x% |& d Montreal 1.6% 193,190 188,016 2.8%
& i* I, C; @& @ -------------------------------------------------------------
3 Q# {! T4 M5 W9 w4 H4 a' } Ottawa 4.5% 181,083 172,250 5.1%: i$ i: K, J2 `
-------------------------------------------------------------
+ g0 l3 x b4 p3 @* N! _& _ Toronto 1.4% 252,088 242,918 3.8%
+ O, g+ z! Z4 u( x5 Q$ l -------------------------------------------------------------+ {) K! o) x6 L2 z3 P
Winnipeg 12.0% 105,648 96,008 10.0%8 P }" {( z8 x& K. o) N: S
-------------------------------------------------------------
8 _( P% o4 V9 p* M7 L Saskatchewan 9.7% 106,250 101,000 5.2%6 ~, G: C5 j: I
------------------------------------------------------------- | Z# l* D' J3 Z
Calgary 53.5% 245,844 153,867 59.8%
" P2 `4 t) z0 h6 u8 X -------------------------------------------------------------
4 `4 V' d7 \/ ]# C7 _ Edmonton 53.1% 200,433 131,500 52.4%
8 T( b1 b0 ]& Z; D+ a) K -------------------------------------------------------------
' b6 R4 F5 O! I2 P* e Vancouver 13.8% 366,250 323,250 13.3%8 u1 ?. l1 Q {" o4 y
-------------------------------------------------------------6 ~! y l3 D" V7 B$ H+ u1 b0 t
Victoria 3.1% 229,000 220,000 4.1%. |4 g$ Y. k2 O" I/ Z
-------------------------------------------------------------5 K; z; R6 e: C
National 13.2% 211,562 185,296 14.2%2 C+ [- E) Y6 I0 {
-------------------------------------------------------------
, G' M! ~/ j/ u; t( l >>
' F" S. Q) @! P2 k
8 f1 ~% k- i; d9 h Average house prices are based on an average of all sub-markets examined& C6 v" Q! p1 u* e- ^; a
in the area, except for the smaller markets of Charlottetown, Moncton, Saint
, d& [3 S' G9 M5 b0 ~* cJohn and Victoria.9 [% P- a% w8 ^0 P
# |! \ U( {6 i# n6 d
The Royal LePage Survey of Canadian House Prices is the largest, most
+ _: C2 k% b5 l; S: ~) w5 Pcomprehensive study of its kind in Canada, with information on seven types of
+ X+ z& K* q0 r! _" m. qhousing in over 250 neighbourhoods from coast to coast. This release' B' h5 O, T8 Y( w
references an abbreviated version of the survey, which highlights house price$ ?: Z" u% p' a+ `1 {+ J# z
trends for the three most common types of housing in Canada in 80 communities* {/ X; @$ }+ D
across the country. A complete database of past and present surveys is
6 S! G3 W( D5 [# U1 ?available on the Royal LePage Web site at www.royallepage.ca, and current
1 m8 Z, [' P# V6 t1 Zfigures will be updated following the end of the third quarter. A printable) X# k" e% R& f% |8 {: l& ^
version of the third quarter 2006 survey will be available online on
3 S' o A" k: F. q a, s/ N8 C- XNovember 15, 2006.6 N; c! ~$ y' a( H4 v/ Z
Housing values in the Royal LePage Survey are Royal LePage opinions of+ f8 t& P0 C5 B. _! @) h) p% o
fair market value in each location, based on local data and market knowledge
5 N1 Y: L: s5 ^. @provided by Royal LePage residential real estate experts. Historical data is
/ r" J9 f9 W+ U' r' p4 I r; H5 }available for some areas back to the early 1970s. |
|