 鲜花( 0)  鸡蛋( 0)
|
Canada's housing market both vigorous and stable
5 o% J0 |6 ~( l' x d5 @$ l0 q1 D: [9 d4 t1 o
- Country's market poised to show growth throughout 2006 -
% V2 o5 N* e% T+ \- G# N
5 \' L0 e! n1 a; D TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market
+ ^- `) l0 T, I$ r. g5 _exhibited moderate price increases and stable unit sales during the third
" V0 D4 u# A; B7 H( ^" jquarter. Wide regional variances continued to be the dominant characteristic
$ y, o/ \5 m5 \" sin the market, exemplified by frenzied levels of activity and double digit
) V4 D: F& ~! f! w2 Xprice gains observed in the energy and commodity rich Western provinces, and
% j7 u7 q0 O4 E) G e2 ~; Wmore reasonable sales volumes and moderate price appreciation in Ontario,7 l: V# X' {9 a
Quebec and Atlantic Canada, according to a report released today by Royal9 R; `1 ^; @! N2 \
LePage Real Estate Services. s( ?2 Z8 T V1 l2 l+ C! Q) A3 y
' ?$ Z! u5 j, }, `6 {2 g/ ]
Nationally, market trends established through the first three quarters
( r0 z5 I/ Y& E: n- q% e; I4 P7 W; {are forecast to continue for the remainder of the year. Robust economic
+ c6 u+ f3 ~ M n, ^conditions, low unemployment rates, modestly growing salaries and wages, and: @/ j" Q" ^+ B8 V
sound consumer confidence contributed to the overall strength of the
$ G6 }" [8 _) a7 X0 b) I1 T9 u+ b% dresidential real estate sector.
0 ]) ]3 P' }5 `7 G: y2 U. d8 T! Q4 U! [, J. |8 z' T7 G% {
Of the housing types surveyed, the highest average price appreciation
( i5 M7 L& n7 f: ]occurred in detached bungalows, which rose to $300,365 (+16.3%)
5 M7 j& I" S" B" Z& v8 h& Dyear-over-year, followed by standard condominiums, which rose to $211,562
% n1 }) U% H: c: o H( \1 _(+14.2%), and standard two-storey properties, which increased to $365,380
8 p' f- P" X1 r* q) b(+13.2%).% p8 F3 i7 J! X) P1 Y: F: @
1 P; j7 B. J' ]; M j. j
"Canada's sturdy housing market continued to demonstrate steady growth' c' T) u6 J+ ~5 G
during the third quarter. For all but the west, we have moved on from the
3 z7 l" e/ r" Q) o a* }4 @frenzied expansion that characterized the first half of this decade, and are
& p. N8 P- c7 t' B" O, ypoised to show continued growth at a more moderate pace," said Phil Soper,
. R+ N0 I" W( B9 A5 j$ z/ @/ upresident and chief executive officer, Royal LePage Real Estate Services.3 O5 s- r8 h& k5 Z
"Gone is the sellers' market that we have lived with for some years. We
$ |- G0 o7 b) ^, kwelcome the more reliable conditions that are characteristic of a healthy
) z/ {+ Y+ X$ Nbalanced market."& M: y Y5 n5 F! q+ ~
) t A9 M/ i" r0 Q Despite the double-digit rise in average national house prices,
' {# F: [; p' J. c: ]/ Q- @considerable regional variances were exhibited again this quarter. The shift. p% q# t" M/ _* ?" H
to balanced market conditions, which began in late 2005, has continued
. O1 C* F$ {* l, i# A# Mthroughout most of the Central and Eastern regions of the country. In the core
7 o5 Q1 H1 B/ r& J7 q' S; E7 Benergy producing western provinces, the combination of very high in-migration,
; ]6 P$ Y- m" Q7 @manageable affordability, and a shortage of inventory has driven record
4 P2 x, ?" _$ z2 n, F4 nbreaking price appreciations.
& p' h. Z) t$ r/ w8 A
7 s" x/ O9 c2 _6 o& q# u' s1 N Echoing the second quarter and supported by Alberta's rapidly expanding! F2 x9 K' ?9 ?1 V/ B
economy, Calgary and Edmonton led the charge of Canadian cities with the
: X! P5 g8 `* X/ _9 z/ N Olargest house price appreciation in all housing types surveyed.! X- W3 u, w3 x3 ]$ Q
) P; @: n+ L9 a1 }
In Ottawa and Toronto, growth remained steady, supported by solid
. F2 h6 W9 F4 F* d- p7 Y: {economic fundamentals, an increase in available inventory and strong consumer
/ C% u8 y2 q+ H% z- Wconfidence. While the pace of price appreciation in Ontario leveled off
6 ~6 I, [. S) L/ l c; jslightly, the province's real estate market remains poised for modest growth.3 S; U5 k7 L% T) d
In Atlantic Canada, new housing and condominium construction offered buyers4 u9 e* x: }$ N: r( Z
greater selection at more competitive prices, resulting in a slower rate of
& o @# ^3 e* u' c b8 vprice appreciation when compared with 2005.
6 h. Q1 {7 I1 f/ r. C3 [" s2 Q+ k' @# A Z2 Q
While the pace of growth in Canada has slowed, the domestic housing
' U% x; A$ X- M, a# j+ w r+ Pmarket is expected to outperform the American market. The economic and) H! h. x# Q' \1 ?
financial fundamentals driving the residential real estate sector in Canada
" P) \/ J: T2 v8 t Q$ ]: sare markedly different than those found in the United States.8 K: ^$ M4 h, h/ f( P
1 v0 C( j+ m) s) Z4 h
Added Soper: "Canada's housing market is likely to outperform the$ m# n. D: D: i4 L+ |
American market through 2007. A number of factors are working in Canada's! }/ A1 H. ^( w9 _+ v$ }6 u3 Q
favour, including healthy personal and governmental debt levels, the$ k' E, a& I# T5 W
relatively modest rise in interest rates in our country, and general
' K0 p' E; @( V/ n1 c/ J5 haffordability in our major cities. In addition, Americans are now seeing the
7 t" s7 t& m; }" [downside of a tax system that encourages maximum homeowner leverage, and
; u7 |+ v% n. h+ d( o/ h @aggressive financial products such as zero- and negative-amortization
$ O: @& D R) a8 a# D* kmortgages that work only in a high price growth environment."% H( v1 x$ ~6 f2 e* Q! }
( d# f! ? z- p: `$ |: p
<<* v C8 @5 M2 c5 s
REGIONAL SUMMARIES) u2 c; x) F; L; v) C1 h* v
>>9 q' X; L/ I; l3 m0 `6 b
) \% @2 c5 B) X5 O d% `' @2 g+ R
Balanced conditions continued to characterize the housing market in2 c# K- M9 H0 f. E6 J
Halifax, as significantly higher inventory levels helped to moderate the rate% Q8 Q: L9 n3 i9 K+ F- D. \1 Z* i
of price appreciation. Buyers were increasingly choosy, taking more time
( b1 \ C4 b0 P$ w% Q8 A& Blooking for newer, low-maintenance properties that were not in need of
/ J: X. Z0 v2 d* K2 x$ }renovations." `' q, ?, z5 `9 K5 R9 P
( p4 C) P0 R1 e3 c
The housing market in Moncton remained healthy and strong as a slight
" ]3 Y2 S0 M" Z0 [increase in inventory helped to moderate the rate of price appreciation* r4 m* l$ @) r a0 `. I6 n, {! S2 s
compared to the same period in 2005. Activity was brisk throughout August and2 D% m+ w' S! E' E) l
September and is expected to remain this way through the fourth quarter.! z9 f6 ^" t- D, L
7 x4 f2 b+ E6 e( W& a3 C; V, x The housing market in Saint John underwent its traditional summer
1 J+ X9 e8 ?. E D" g2 O eslowdown in the third quarter, with activity picking up towards the end of the
) j, t$ p% B4 X+ g I0 d( wquarter. The local economy continued to thrive, as construction on a new3 t+ r J5 B" p9 E$ L
600,000 square-foot shopping area has begun, bringing several new box stores8 x2 j* t5 M v8 l' U, }
to the area. Buyers have begun seeking less expensive fixtures for their homes
6 M+ g+ V9 ] X* Wand are instead opting for more affordable housing options.
( Q, ^8 t9 v3 G4 }3 j
7 P1 q7 y2 I' c In Charlottetown, the housing market started to move towards balanced* E( ~: b3 B; ]/ u1 H! k
conditions, as some sellers had to begin to lower the asking prices on their
! \- V9 M- k" T. u% g2 l. ahomes to make them more competitive. Activity from out-of-town and US buyers7 d# n$ `, V* d' v' T! @
was down slightly compared to 2005, likely attributable to the strong Canadian
0 Z+ k" O0 ^8 @6 K( V* \8 Cdollar. Inventory levels began to creep up in the third quarter, providing' Z* S4 h& I) Z0 d: u3 F* B4 P
buyers with more options when looking for a home.' `$ G7 `( X, |1 D2 ?
( o c3 l! f7 s- O Activity in St. John's slowed slightly in the third quarter, particularly
9 }, G' U7 a8 [2 X, A# `+ namong higher-priced properties, where there was a slight over-supply of homes
m- E7 b, Y, v f) Gpriced over $200,000. Listing periods have increased when compared with 2005,6 L0 U3 \+ |+ r+ C
as some of the pent-up demand that had characterized the market over the last
$ _. N- W/ W+ i9 u$ W' u. V( n* z8 Dfew years has been satisfied, resulting in more normal, balanced conditions.; J- g/ L9 D, c; `: a4 i2 o
l4 {: K/ G+ p ~1 i7 Z
Montreal's housing market recorded modest increases in average house( D& A$ E# ]' {
prices, due to a slight seasonal slowdown in the third quarter as inventory
4 E/ `& [- h! S( q1 b+ Vlevels rose. Part of this can be attributed to the fact that many renting" {# P% i/ a$ v8 }, H
first-time buyers were motivated to close on the purchase of a home by July 1,
" |' t* O4 X" \when rental leases expire in Quebec. Once this date has passed some of the+ h/ G# x/ p; v6 P% D$ @) e6 B
pressure is taken off the market, allowing buyers to visit more homes before
" E; ]/ ]( d# p" D3 smaking a purchase.% m5 `6 U3 w' V V# q
; ^ g+ |$ S2 ?+ ^
Ottawa held its position as one of the country's most stable housing
7 F+ d+ |! A8 a, d' \$ C2 Wmarkets in the third quarter, reinforced by a vibrant local economy and strong2 C' {& c1 t1 ~* g$ n5 q# j" X
confidence, resulting in modest increases in average house prices. The city+ o+ ~/ t0 W; r" i. a
centre remained a bright spot in Ottawa, with homes in this area attracting
4 R* d- @1 n3 V0 kattention due to their convenient location and proximity to downtown2 K6 s A0 i4 O. N" z8 u
amenities.! R& I Q% W1 C; }: U( _
7 ?- c: {; W: M/ y4 f; j
The housing market in Toronto sustained healthy activity levels+ z, K \8 { _1 m, x; J6 b; J2 C
throughout the third quarter, as a strong economy helped to maintain demand; X+ F# l1 f& v
across the city, causing average house prices to rise moderately. Toronto has
' b' F: W4 A/ w& L7 Ycontinued to experience modest growth in average house prices, and has been5 Q5 P! @" D: W( y9 S
driven primarily by purchasers who are buying homes as their principle
; ?" [) ^; v0 r; hresidence, rather than for investment.
8 D+ R* b0 l, [* F0 x9 W7 m r1 ]
/ P0 N/ X) t: p! \: D3 D The vibrant Winnipeg housing market continued to show its strength as+ V- g r& A2 F7 r
house prices rose during the third quarter. The booming local economy resulted7 O$ i2 b t2 U) }
in a historically low unemployment rate, helping to bolster consumer
. W, v" x2 ` k0 `& Pconfidence and Winnipeg's ranking as the city with the lowest capitalization
& z. ~! _* o8 Hrate among the country's larger cities - helped to encourage buyers to enter
; @9 W; Z; W$ ~# r$ }6 V8 vthe market.
0 a( Y/ d6 h8 M5 J, s/ ?7 k$ M
2 L5 H. g' D I In Regina, the market experienced a slight seasonal slowdown through
. Q' J& L( @8 g: MJuly, as there were fewer purchasers in the market due to summer vacations. In
5 G' C7 C6 i% D! dAugust, activity resumed to the busy pace previously seen in the spring6 Y& p& \' `/ m! `
months, as the influx of purchasers made it more difficult to find a home due* _/ X+ E4 H3 O, {, ^, F
to the shortage of available inventory.! y+ n; n$ \( i0 H
6 Y- b6 k! S8 O) l' ^ Activity in Saskatoon remained brisk as the market maintained its7 C( \- [$ y* o; x0 r
momentum from the busy spring sales period. The economy in Saskatoon remains
( b. j$ R/ R, d* tvibrant, as employment opportunities are abundant with many businesses3 y. t" D1 m& B+ i9 Z) J1 y* H3 X
struggling to make hires and having to recruit outside the province.8 X8 J/ I2 v# \+ a# c- r+ V* o1 Q) n
* a5 n9 m$ A; L Calgary's housing market recorded blazing average house price increases
$ H1 a4 O( }! C5 ]* J7 Nin the third quarter, in all surveyed categories. The burgeoning economy, low
& m) ?: a) v# P. s$ G. i9 E! funemployment rates and low inventory levels remained the leading factors that
+ U7 j7 ]3 X# }. E# Bpressured Calgary's house prices upwards. However, regardless of the soaring
: B6 g" q7 Q* |/ c- \- W$ `, k" Kprices that characterized the market - even during the typically slower summer
6 x& W$ R8 B* ~* L* H" Lseason - it is expected that activity will become slightly more balanced, as
3 n" `2 B; H# I8 D- g& ~( n* W; {( N& ibuyers are becoming more reluctant to participate in the frenetic activity.; W+ ~" y& q# N' |5 F* z# J# C
9 q9 E; E* V1 u6 Y" c& `( ~! }0 x
Edmonton's booming local economy continued to thrive in the third quarter
6 ?9 |" C" d# @) was activity in the oil sands north of the city continued to flourish. Edmonton
- R N" {& d' }( sremained the hub of activity for those coming to work in the oil industry,
. O) T* X0 l, g4 dmaintaining tight inventory levels across the city, resulting in prices: g' X. {) e9 m8 {4 q
increasing at record levels. However, as inventory levels continued to improve
% \3 N' b2 W- a9 Y* Sin the third quarter the rate of price appreciation should moderate slightly1 F" U$ v% W0 ?
towards the end of 2006.
0 g! M! P) {" Y f% n: c# T! F- ?) z
; [: T1 D; M2 r/ T% g7 |4 }7 gWhile Vancouver has seen a slight reprieve from the severe shortage of
1 {0 n9 {$ a S9 a. ?- w6 v5 Xinventory that had previously characterized the market, supply is still unable* U& S) z2 }- v' Q0 ]
to meet demand, driving house prices upwards. Vancouver has a very diverse2 d2 v' Z! y% r+ ]1 R
group of active buyers - from first-time home buyers to baby-boomers to% A h9 h: B% M+ W$ c; z) z
foreign investors - all of whom fuel the demand for houses, placing added
- W. B5 g: D" w9 F3 ~( _pressure on tight inventory levels.& ]0 S, a3 a- a# k) @
# \& V ~0 J- G! E! X, s Victoria's market is vibrant and supported by strong economic6 ~: v) H, b6 |: ~; @
fundamentals, fuelled by a booming tech sector and a migration of young people: o& ?9 @- A( i; F1 J
into the city that has continued to support the area's house price increases;
8 }/ M" [; \& `1 i9 W0 k) g. g9 Lwhile increased inventory levels have afforded buyers more time when searching
7 z7 h1 q- @) [0 [, ^' A. X% w6 ofor a home, helping to normalize the market's pace./ |) d6 r, S# f6 f" J# j0 L
0 c0 c- C9 V, H: c
<<
/ D8 u1 G/ t8 T! m Survey of Canadian Average House Prices in the Third Quarter 2006
. b$ p c4 u4 [( H- _+ ~7 l
- s0 l2 N+ U. `1 `& z -------------------------------------------------------------------------+ x) T+ Q2 J; a7 F: H7 A5 ~# j( M
Detached Bungalows Standard Two Storey
9 C+ x; m1 j' }5 Y. m! s+ _9 _0 U -------------------------------------------------------------------------
2 ~' R1 Z, z0 [* u- _# [% a2 } 2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q3) S: J: S2 r- Z& F0 S
Market Average Average % Change Average Average
% A! _+ l" ^" b -------------------------------------------------------------------------: j* x2 W9 E+ ]1 x6 X
Halifax 186,333 173,333 7.5% 198,667 199,000
, U- {- ?- r, `9 J- ^7 k- V -------------------------------------------------------------------------
4 N: M1 q6 n* g0 \/ n Charlottetown 145,000 141,000 2.8% 175,000 170,0002 D X; M7 l3 X. o7 R
-------------------------------------------------------------------------; u6 j% U* e& B1 x; b6 [
Moncton 135,000 127,000 6.3% 129,000 123,000$ G1 K! K& {5 _# m2 S+ S
-------------------------------------------------------------------------5 [/ L5 `; a1 T5 q& K8 C' W% i: T
Saint John 141,200 142,900 -1.2% - -- `, S/ r+ B( A W* m
------------------------------------------------------------------------- D& t# O3 n W$ ^3 b
St. John's 143,667 142,667 0.7% 200,667 202,3335 X: p6 X! B x' {+ _
-------------------------------------------------------------------------
, o t, X/ n- l Atlantic 150,240 145,380 3.3% 175,833 173,583
5 J: N; d( t4 [: R1 s -------------------------------------------------------------------------
3 a2 X2 u* Z0 J; s& Z8 G Montreal 213,691 203,500 5.0% 321,141 316,1851 \; g8 K1 c0 V+ y3 n/ U. G, `
-------------------------------------------------------------------------
% v) T% H- j% B* w Ottawa 290,083 278,417 4.2% 285,667 273,2500 [: e# Q1 B$ E( v
-------------------------------------------------------------------------
' f9 O" ^# q; x Toronto 373,368 355,882 4.9% 481,523 474,766
; h, q0 N, X: A. w -------------------------------------------------------------------------8 p; ~7 C/ _) k2 f
Winnipeg 181,579 159,860 13.6% 202,337 180,707
0 T+ e5 @* L+ E) b5 r( f/ u6 w -------------------------------------------------------------------------
2 m7 f% @8 l) m' J0 m0 t) ? Saskatchewan 170,667 156,083 9.3% 182,600 166,500& F+ A0 m2 p& v- E& z2 M1 o% D
-------------------------------------------------------------------------% L( ~! t" ]% _" J
Calgary 395,067 252,411 56.5% 405,778 264,389' z S' u! b% {: r
-------------------------------------------------------------------------' d1 d7 r' F( s; c& |
Edmonton 286,857 194,857 47.2% 316,429 206,714! \8 q0 [' l" n+ _
-------------------------------------------------------------------------
" Z" |0 {$ k; l* I2 j Vancouver 704,250 601,000 17.2% 794,000 697,5008 D2 @& a* C( A0 \$ g7 o: E) I
-------------------------------------------------------------------------
* V' P8 q& \7 _6 E' t Victoria 375,000 348,000 7.8% 403,000 391,000
: Q& a G4 [) z! V4 C8 N% M -------------------------------------------------------------------------
$ | j9 V+ D! n& ] L/ N National 300,365 258,202 16.3% 365,380 322,860
6 s& F" B. ?' b -------------------------------------------------------------------------* y1 Z, t% B( W3 k3 l
2 P$ O, _( n q -------------------------------------------------------------
. S4 q& d7 f2 T" w9 Q) h# l Standard Condominium* B4 d- _4 Y: N; D4 p
-------------------------------------------------------------
: D) L0 m1 s6 G1 c$ N 2-Storey 2006 Q3 2005 Q3 Condo
9 X* l; ^, y9 @% s Market % Change Average Average % Change" [9 B# u6 a a2 `
-------------------------------------------------------------7 @6 [& v8 o& n# l: z# d7 z8 `
Halifax -0.2% 142,000 103,000 37.9%
( E# k4 r) q9 V4 c8 ?( m -------------------------------------------------------------' [- ]+ C$ T v' P
Charlottetown 2.9% 98,000 98,000 0.0%: ?4 [% e2 ]9 m$ W- N9 Y
-------------------------------------------------------------
. ^% e& Y1 z. l3 s% M) ~" \1 z Moncton 4.9% - - N/A
" {" s6 e) f4 l -------------------------------------------------------------" I' a( ^' K4 T. D2 b6 w
Saint John N/A - - N/A. a- Q% k( Q' K ~
-------------------------------------------------------------
' S' h1 H! m+ W @2 P9 F# @) k- [ St. John's -0.8% 146,333 145,667 0.5%4 w; b+ }; M$ X
-------------------------------------------------------------+ o0 t2 {6 i0 c6 `+ u2 Y
Atlantic 1.3% 128,778 115,556 11.4%; r3 y( p$ ]" \# k; p8 |7 T
-------------------------------------------------------------& R$ g \- g5 n: `# n" U
Montreal 1.6% 193,190 188,016 2.8%
; \. m& B) G) l' n -------------------------------------------------------------
9 K! h6 N) S D" w Ottawa 4.5% 181,083 172,250 5.1%
1 g- }* t' w7 \3 H2 P2 ~ -------------------------------------------------------------$ D4 V& ^. S( q- o* F7 M* t! K$ j7 }
Toronto 1.4% 252,088 242,918 3.8%
! a% L, z! r! Y( z) H1 d0 a -------------------------------------------------------------: U* n: ^0 }# ?7 f
Winnipeg 12.0% 105,648 96,008 10.0%( k, X. C* r* d: t/ D4 r P
-------------------------------------------------------------
( o# ~3 K% R/ B3 Z w Saskatchewan 9.7% 106,250 101,000 5.2%
3 s( j( u- J3 b' R! l+ p* f -------------------------------------------------------------' ?/ G; r7 v5 E; ^" K( [7 M+ D
Calgary 53.5% 245,844 153,867 59.8%
$ |* K/ f5 T( ~. P1 ~. X; r -------------------------------------------------------------% m* t6 q! r7 F. h7 y
Edmonton 53.1% 200,433 131,500 52.4%' Z2 G; U; e( n9 P5 |) s' V
-------------------------------------------------------------' W) U/ w- b; H2 c, `: G# l+ p
Vancouver 13.8% 366,250 323,250 13.3%1 ?* v9 W1 K: ^7 F" u z
-------------------------------------------------------------
- b0 D! e- x9 B6 e$ H% d" j Victoria 3.1% 229,000 220,000 4.1%
) l0 j; e" A& D7 V4 u& }; E -------------------------------------------------------------* g. o7 j1 {: x v
National 13.2% 211,562 185,296 14.2%
Q" B0 W) m/ G( p1 i9 Q; i# p% S -------------------------------------------------------------
+ b% r. x. D2 Y, |* s) q >>
% W+ Q1 C' u: d. T' b- t+ B: C
3 M/ _1 i) b2 V, c) R Average house prices are based on an average of all sub-markets examined
" v# p4 F+ _% }in the area, except for the smaller markets of Charlottetown, Moncton, Saint i3 \, n C$ a% T
John and Victoria.
v- } F2 W0 I# }7 o
2 P3 q& w! v0 d The Royal LePage Survey of Canadian House Prices is the largest, most; _ ]& a0 H! Q5 o
comprehensive study of its kind in Canada, with information on seven types of5 @. |4 J9 x" K; I" m# _- f
housing in over 250 neighbourhoods from coast to coast. This release
& Y& P4 H/ z# ^7 d& f n: oreferences an abbreviated version of the survey, which highlights house price& U% ^ p8 x3 t+ u& g, J
trends for the three most common types of housing in Canada in 80 communities
" [: B* B. W' e: E+ |across the country. A complete database of past and present surveys is& H/ Y1 T3 t- j
available on the Royal LePage Web site at www.royallepage.ca, and current
% q/ @8 ]8 a8 I) k9 R0 Zfigures will be updated following the end of the third quarter. A printable
2 U2 P( u G \ |version of the third quarter 2006 survey will be available online on5 Q l. J0 g% v( s- z
November 15, 2006.
9 q! n, m) F7 l, x Housing values in the Royal LePage Survey are Royal LePage opinions of
- t- o5 V3 z0 O0 v- Pfair market value in each location, based on local data and market knowledge
3 Y% w/ f. U/ F Vprovided by Royal LePage residential real estate experts. Historical data is( d. Y# |6 N6 A" b! n1 F& e
available for some areas back to the early 1970s. |
|