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Canada's housing market both vigorous and stable - Q& m1 o0 F+ q# E8 q8 T" V4 h
0 \9 ^1 x8 }5 z- Country's market poised to show growth throughout 2006 -& a& q6 y6 e9 [& ?% Y( L% @: H0 ]
" h, ?0 l+ T H: N! b TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market
: {7 A9 x( z9 [5 \exhibited moderate price increases and stable unit sales during the third
4 |; J" D+ C8 `, ^. v- g, r. Jquarter. Wide regional variances continued to be the dominant characteristic5 X. \. U" U7 H/ z; v# i1 M. L8 N3 Z
in the market, exemplified by frenzied levels of activity and double digit f. t j/ U. N% R
price gains observed in the energy and commodity rich Western provinces, and* U0 \* I) P1 U) ]* O( X
more reasonable sales volumes and moderate price appreciation in Ontario,
8 [9 Q" W4 E1 X% l, A, \Quebec and Atlantic Canada, according to a report released today by Royal
0 [; Y4 ?1 W g$ L* B% W; i& xLePage Real Estate Services.4 D+ @" ~1 D% _. w/ x0 D
" G% A+ ]" T! F3 j8 B
Nationally, market trends established through the first three quarters
2 q* q# E1 K0 l/ K z( }are forecast to continue for the remainder of the year. Robust economic; c9 t% }6 N( C6 _# N
conditions, low unemployment rates, modestly growing salaries and wages, and
& y# }$ R% v' _% R: W+ `: x/ ssound consumer confidence contributed to the overall strength of the G4 E/ w8 i8 P3 z5 U0 E
residential real estate sector.
$ o2 f2 l" B& b$ g @ X! h1 b, R( J. {7 }8 Q2 K. m1 v: k
Of the housing types surveyed, the highest average price appreciation
! l' @+ x6 b* d$ A: l3 b0 i, Z9 [occurred in detached bungalows, which rose to $300,365 (+16.3%)- p4 m0 u4 }, _, q& h
year-over-year, followed by standard condominiums, which rose to $211,5621 k2 K; k9 g$ q
(+14.2%), and standard two-storey properties, which increased to $365,380
( x( k2 d5 k1 B! t% M2 ^0 W(+13.2%).
+ n% N* X- b `
2 G& M9 |2 y) s* A6 z. z& k- ? "Canada's sturdy housing market continued to demonstrate steady growth& `+ \5 X/ q2 b" w! I& }$ ~, n
during the third quarter. For all but the west, we have moved on from the
[, {" M! X' ~2 j6 _frenzied expansion that characterized the first half of this decade, and are
i4 j5 V' k- K: f0 L9 zpoised to show continued growth at a more moderate pace," said Phil Soper,
! O- x( b$ I0 T& N9 S9 tpresident and chief executive officer, Royal LePage Real Estate Services., u) U+ f3 t7 n; w6 S4 H2 W+ k
"Gone is the sellers' market that we have lived with for some years. We4 J8 U5 ^" @9 T9 T0 d
welcome the more reliable conditions that are characteristic of a healthy8 l% j: b' h$ C' Z; X: V0 u
balanced market."0 `1 v" L% _; p; B5 W. n9 M
- b" ?& y; d R0 h+ f& H
Despite the double-digit rise in average national house prices,
( g) I5 F& U0 } Wconsiderable regional variances were exhibited again this quarter. The shift
/ h+ h% W- P, Y+ X# eto balanced market conditions, which began in late 2005, has continued& Z8 Q$ L" A& Z; \ Q' b
throughout most of the Central and Eastern regions of the country. In the core
4 X0 u" w3 t' |& b6 _1 yenergy producing western provinces, the combination of very high in-migration,
8 M4 h- j* C9 |3 X1 F5 C3 gmanageable affordability, and a shortage of inventory has driven record
8 O2 a% G" W, y6 k' V1 y3 h5 Cbreaking price appreciations.! D* ^0 [9 V- u0 n
0 _! _8 c* R+ S0 N' s# g) {8 r* s
Echoing the second quarter and supported by Alberta's rapidly expanding( y8 }; |1 V! L" A
economy, Calgary and Edmonton led the charge of Canadian cities with the
. Q* U y, G1 o8 Tlargest house price appreciation in all housing types surveyed.
! P: P' y, n0 {8 Q* D. H
# y0 [2 x8 C1 R7 o In Ottawa and Toronto, growth remained steady, supported by solid5 K. y4 ?- [' f C
economic fundamentals, an increase in available inventory and strong consumer. H2 `+ |: g. v, O2 [
confidence. While the pace of price appreciation in Ontario leveled off
; y3 k; S* w0 j3 s `: Bslightly, the province's real estate market remains poised for modest growth., O }/ E( ^7 y$ C
In Atlantic Canada, new housing and condominium construction offered buyers
* E& d2 X; V$ ], D' cgreater selection at more competitive prices, resulting in a slower rate of& E: R) _" F* c6 i5 W E+ a
price appreciation when compared with 2005.: m/ X$ ~- i8 s
1 i0 l/ A" E5 n0 m6 n: h( L- Z
While the pace of growth in Canada has slowed, the domestic housing
: ~0 u) C# q7 Q4 B% u7 e. }market is expected to outperform the American market. The economic and
& o* ?1 _4 N2 w( }2 u; @financial fundamentals driving the residential real estate sector in Canada
; f3 B9 w0 E' m; Ware markedly different than those found in the United States.. O, j, D" B- e7 G6 y; n
& c4 _3 h/ f9 c0 W8 H6 X/ _. S# D
Added Soper: "Canada's housing market is likely to outperform the
+ u" n* E4 w: Q/ _2 }2 |* @+ m: b8 |American market through 2007. A number of factors are working in Canada's
+ p8 `0 m, G5 afavour, including healthy personal and governmental debt levels, the1 b, W; Z/ R& \
relatively modest rise in interest rates in our country, and general; G1 `6 Y+ L" b9 ^+ U# W
affordability in our major cities. In addition, Americans are now seeing the/ W# F8 o' ?4 W
downside of a tax system that encourages maximum homeowner leverage, and7 `9 t5 s) q. z% x8 j1 F* Q( M
aggressive financial products such as zero- and negative-amortization
, r- J# _; ~$ mmortgages that work only in a high price growth environment."
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" ]3 g! V7 W } O. n; q <<
( L" \* a7 \' g5 F7 x REGIONAL SUMMARIES
* U8 n8 a! r* _% w4 a >>
7 G3 e+ N0 y8 j+ A. x. U. X" S! g& \$ F7 d) N4 W
Balanced conditions continued to characterize the housing market in# m: | I. ]: z; m8 k9 v5 p
Halifax, as significantly higher inventory levels helped to moderate the rate
8 o9 G- o5 x# q jof price appreciation. Buyers were increasingly choosy, taking more time: P6 E, N$ A" T
looking for newer, low-maintenance properties that were not in need of
4 Z" x8 c& s6 t3 g, A& R/ {: _2 Drenovations.
0 z0 e3 u" N/ p, b
! a% K8 k2 ~/ N& x3 @0 V* l The housing market in Moncton remained healthy and strong as a slight
! l0 x9 J5 b9 u! e2 x m" D7 K& c* Uincrease in inventory helped to moderate the rate of price appreciation0 d+ C2 o/ k L; t4 \- g% ]/ h: J
compared to the same period in 2005. Activity was brisk throughout August and6 I0 L [% n+ ^: s
September and is expected to remain this way through the fourth quarter.
: E% s. A/ E$ B( s, _6 w5 E ~/ X5 w0 ?& { D; c/ b
The housing market in Saint John underwent its traditional summer/ F7 `4 j7 Y1 R7 x6 B
slowdown in the third quarter, with activity picking up towards the end of the
5 b7 a+ j( Y0 Z) xquarter. The local economy continued to thrive, as construction on a new6 u/ W% _' Q: ~1 P/ k5 f8 J( k4 p
600,000 square-foot shopping area has begun, bringing several new box stores
/ X; ]3 Z9 I" Dto the area. Buyers have begun seeking less expensive fixtures for their homes' }$ k. n ~ M4 ?' l, |
and are instead opting for more affordable housing options.
7 s q/ K2 f$ _( k
8 q v/ b" j: M4 o6 C4 ^/ v In Charlottetown, the housing market started to move towards balanced
: A, V3 ^. z9 i* ]2 W' \conditions, as some sellers had to begin to lower the asking prices on their
1 x3 y6 n9 ^4 |0 chomes to make them more competitive. Activity from out-of-town and US buyers
" H) V+ S! n; u' f# \7 Dwas down slightly compared to 2005, likely attributable to the strong Canadian) h* V& |( m E0 A/ O, s
dollar. Inventory levels began to creep up in the third quarter, providing1 m% h# N3 S8 u. n$ Z
buyers with more options when looking for a home.
/ w/ p1 H9 k" N0 X
: H z. w/ L/ a7 q- a" f Activity in St. John's slowed slightly in the third quarter, particularly
2 J( X+ L5 _9 `3 q* Gamong higher-priced properties, where there was a slight over-supply of homes' h0 j9 _0 C2 l$ O C. G: E) f7 z
priced over $200,000. Listing periods have increased when compared with 2005,
. H, ]. }3 J- Y1 ?1 I3 O: R. Pas some of the pent-up demand that had characterized the market over the last
; D$ f% @: y. h3 n! a9 N5 bfew years has been satisfied, resulting in more normal, balanced conditions.& b" i( w( x/ B# a% r- Z) O
H% U# t, ~( u) S
Montreal's housing market recorded modest increases in average house
% q& m( `8 ]' fprices, due to a slight seasonal slowdown in the third quarter as inventory5 d( o) E: A) r. n0 a3 R# R
levels rose. Part of this can be attributed to the fact that many renting5 \8 @ {/ W6 z4 g! c. ^
first-time buyers were motivated to close on the purchase of a home by July 1,
, G$ U2 u" Z1 ^when rental leases expire in Quebec. Once this date has passed some of the* G. x0 P3 D4 R( _9 K
pressure is taken off the market, allowing buyers to visit more homes before
* S, ^& x$ H; l& z Z4 Z2 Omaking a purchase.
3 ]5 |9 O. I& W' v& r+ d% F! I9 ? u
Ottawa held its position as one of the country's most stable housing: E% J- q1 n+ U; R
markets in the third quarter, reinforced by a vibrant local economy and strong2 V9 P6 F$ _- f7 H; F0 ~
confidence, resulting in modest increases in average house prices. The city
" ^/ z! m# \" Mcentre remained a bright spot in Ottawa, with homes in this area attracting
( C6 P: y8 ^. j2 c8 }attention due to their convenient location and proximity to downtown
, z9 n" O! N8 |3 U/ oamenities.& ^. `, ?; {, L8 M" \- M& i- |; w
$ O- c( I& _1 _. X1 s* ~% ] The housing market in Toronto sustained healthy activity levels
7 j2 M' O# G) v% b/ Y! V( xthroughout the third quarter, as a strong economy helped to maintain demand
* h! [ h0 G7 i# V7 xacross the city, causing average house prices to rise moderately. Toronto has
+ I# J( {. d1 t2 d" c3 b% Q- Hcontinued to experience modest growth in average house prices, and has been
" h! ]. Z& D8 xdriven primarily by purchasers who are buying homes as their principle( ^" J3 X1 l( ?4 `6 q: \/ B
residence, rather than for investment.
9 B0 v% f: S5 c4 I* _
1 O7 j5 u. f1 ?* h4 @: {; O4 [ The vibrant Winnipeg housing market continued to show its strength as% _3 u0 J L1 l, r
house prices rose during the third quarter. The booming local economy resulted/ l( F' K( z: N% V
in a historically low unemployment rate, helping to bolster consumer9 h3 \; l: {: C) z6 G' ^6 ?& \
confidence and Winnipeg's ranking as the city with the lowest capitalization
E* ~) r% J/ w, jrate among the country's larger cities - helped to encourage buyers to enter2 C9 p' z( S- g. `5 E7 l
the market.
7 Y6 i' y7 ?/ ~/ \5 G. E+ [' x) k# a' N: }) F. S' N7 D' N5 C
In Regina, the market experienced a slight seasonal slowdown through
7 }0 k: t3 a0 a. F& RJuly, as there were fewer purchasers in the market due to summer vacations. In
; R& {0 o6 g- f3 cAugust, activity resumed to the busy pace previously seen in the spring- N5 C7 ]1 Y: i( ?; @. x G
months, as the influx of purchasers made it more difficult to find a home due
% O& k" _ J0 R3 z4 Nto the shortage of available inventory.
, @& ~! G% g$ Y
8 ?5 i @! q- y9 k9 R Activity in Saskatoon remained brisk as the market maintained its
) d& g, o3 y3 ]3 C; cmomentum from the busy spring sales period. The economy in Saskatoon remains- ~5 C: a7 a* [* M O- Z" P
vibrant, as employment opportunities are abundant with many businesses+ K$ A! b _; }* I
struggling to make hires and having to recruit outside the province.
# ` j1 @- G$ g1 x) m9 t% d
+ J( q [1 U9 M5 f( O Calgary's housing market recorded blazing average house price increases
- a% s$ w4 }: C- }% Zin the third quarter, in all surveyed categories. The burgeoning economy, low9 O" r7 z0 U r( U2 h1 m
unemployment rates and low inventory levels remained the leading factors that
/ d, ~- U! W5 v( z7 jpressured Calgary's house prices upwards. However, regardless of the soaring
& }' T" O. N* mprices that characterized the market - even during the typically slower summer% ]& c/ C, e/ q- y" H
season - it is expected that activity will become slightly more balanced, as. S& K% ?1 E* j$ c
buyers are becoming more reluctant to participate in the frenetic activity.1 v% I* C2 u0 _
3 U6 @6 f+ x% c Edmonton's booming local economy continued to thrive in the third quarter% g( E1 A# E: M( R0 i) y
as activity in the oil sands north of the city continued to flourish. Edmonton i* T" G- R* T1 \7 H4 t, X- W
remained the hub of activity for those coming to work in the oil industry,* M$ n% `' Y, ~" _' Y! J. e( C
maintaining tight inventory levels across the city, resulting in prices/ ?2 t+ Q X g& J7 H; i. b$ o
increasing at record levels. However, as inventory levels continued to improve
0 I$ r: G @% E' q- L1 ]+ uin the third quarter the rate of price appreciation should moderate slightly
# L3 g- _( J L* Ktowards the end of 2006.
! C! F/ f0 D& Q1 _' c3 x& r$ P1 B$ D) Z5 C u
While Vancouver has seen a slight reprieve from the severe shortage of
- f. [' t* v5 V0 t. o: Ainventory that had previously characterized the market, supply is still unable
- _. i) g. S7 {1 Oto meet demand, driving house prices upwards. Vancouver has a very diverse
4 L, G. q& I# b1 O$ ^; v& Hgroup of active buyers - from first-time home buyers to baby-boomers to' r% @% ]% T' I5 ~- V1 n
foreign investors - all of whom fuel the demand for houses, placing added3 u: z" O$ S K" [6 ?7 i. B
pressure on tight inventory levels.
8 V# q, w1 C7 {
4 q1 f/ j2 Z/ A* t: q Victoria's market is vibrant and supported by strong economic- A9 p6 [+ H& Y+ L9 f, ~
fundamentals, fuelled by a booming tech sector and a migration of young people, n* V( i ^# u Q
into the city that has continued to support the area's house price increases;
, X/ t% ]6 N6 M4 u! [+ B* ~ _! @while increased inventory levels have afforded buyers more time when searching# l9 [3 N2 K6 Q: m' q
for a home, helping to normalize the market's pace., P" {) I8 q$ ^" n# _
- z! w" D( E8 {4 x- W* m$ c" _
<<
$ x% K P+ T5 n) v: R) S- [ Survey of Canadian Average House Prices in the Third Quarter 2006
$ ]4 `) ~8 M; y0 s6 o1 V# t, n d6 |5 I( Q8 j* _4 d1 }7 D
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! \9 @. n1 {2 M- P Detached Bungalows Standard Two Storey
" s% L+ \9 ?( N' L -------------------------------------------------------------------------8 H) N, [# N6 D' n: {: t
2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q3
- y1 U- x2 P# W2 ?$ R9 v, _ Market Average Average % Change Average Average, X9 P9 ^% e$ b: P; n$ H
-------------------------------------------------------------------------/ `/ D$ f7 o+ r' f
Halifax 186,333 173,333 7.5% 198,667 199,0000 ~5 G) a7 l: v! |
-------------------------------------------------------------------------1 B) O+ i' ^; F5 v% \5 R
Charlottetown 145,000 141,000 2.8% 175,000 170,000
2 Y7 O/ k0 f" O2 t! `; f; W -------------------------------------------------------------------------
" c9 X/ X) W/ F, F/ w! a! Q Moncton 135,000 127,000 6.3% 129,000 123,000
, ~+ n3 y: s1 v% u: H: ^8 v -------------------------------------------------------------------------0 f7 L- J) r/ F) y( I: ^6 B
Saint John 141,200 142,900 -1.2% - -
5 k9 g. H% h ~$ w9 N$ A% @* c -------------------------------------------------------------------------
% u- q) h a! `: |% H St. John's 143,667 142,667 0.7% 200,667 202,333. t" {# M" A: R+ `" g
-------------------------------------------------------------------------. d7 z: E3 [: C
Atlantic 150,240 145,380 3.3% 175,833 173,583( @6 ?3 y$ b. c# [2 j; k0 p: C
-------------------------------------------------------------------------
# D4 D$ | z0 r/ B W Montreal 213,691 203,500 5.0% 321,141 316,185
* E" X/ b# L( G* q -------------------------------------------------------------------------
1 Z! `$ o# ~# y Ottawa 290,083 278,417 4.2% 285,667 273,250
9 C3 L$ p+ w% v8 |9 J) O -------------------------------------------------------------------------
! \4 M2 r4 b' Q3 |; L) q& p! M5 i7 z Toronto 373,368 355,882 4.9% 481,523 474,766
$ T& |' R, o1 x" d7 z8 v -------------------------------------------------------------------------5 J/ V; v/ P V" k3 d
Winnipeg 181,579 159,860 13.6% 202,337 180,707, f$ P: O3 X6 I$ |' W E5 i
-------------------------------------------------------------------------
" P- r1 a- Y. h7 w/ T: @ Saskatchewan 170,667 156,083 9.3% 182,600 166,500
- Y/ S: z! d( D$ `! t" `+ O* O( ~ -------------------------------------------------------------------------
6 d7 c7 l8 p% Y% _* c' s4 Y; v, [( h Calgary 395,067 252,411 56.5% 405,778 264,389. k0 U# E3 }3 Z. m3 ?+ C
-------------------------------------------------------------------------1 U0 [+ P- W: w# }1 V
Edmonton 286,857 194,857 47.2% 316,429 206,7144 y( I2 l3 E0 Y9 ^$ L
-------------------------------------------------------------------------8 y! e4 r( C/ K% Q
Vancouver 704,250 601,000 17.2% 794,000 697,5006 w; r% |' T2 m& o$ R
-------------------------------------------------------------------------
0 b. j( K5 S, U6 ` Victoria 375,000 348,000 7.8% 403,000 391,000
* n1 y- Z3 G- v- Y+ c. k -------------------------------------------------------------------------
0 T b e' Y' B$ x% k; C National 300,365 258,202 16.3% 365,380 322,8609 r+ [. @# g& a3 e
-------------------------------------------------------------------------
* T2 L- ^& o! l: `- p0 R3 p& N* K. l. |* \3 ]6 ]
-------------------------------------------------------------! R: J( G2 w( U# a+ p; h
Standard Condominium
0 \/ a9 q: ^* U. Q' P8 z -------------------------------------------------------------) o0 U4 G2 c; ` V
2-Storey 2006 Q3 2005 Q3 Condo
' [, u0 B" V1 @0 J Market % Change Average Average % Change, C9 K ?$ i9 ^0 T6 R3 k" J2 J
-------------------------------------------------------------% A- j( Q4 V# ^, z
Halifax -0.2% 142,000 103,000 37.9%/ [, M! w$ G" b U+ |& g' w
-------------------------------------------------------------( [9 D, p) ]" @2 q7 \. K' O; n
Charlottetown 2.9% 98,000 98,000 0.0%
- H, Z2 a3 X$ s -------------------------------------------------------------! N( x8 S% ~2 X& {2 a
Moncton 4.9% - - N/A& B: L5 |$ N) X/ S
-------------------------------------------------------------
9 q; k0 N, N o1 D+ p Saint John N/A - - N/A
9 i0 O$ a: X: U1 A -------------------------------------------------------------
4 @% t: x" }: [# ]: I, b, M St. John's -0.8% 146,333 145,667 0.5%
( _! ?8 l: ?8 t. r -------------------------------------------------------------7 c) t2 }$ h# n+ P" G7 ?6 ]
Atlantic 1.3% 128,778 115,556 11.4%- V7 {! L/ a; H/ ?: t; m: H+ S
-------------------------------------------------------------2 H! o( ] H7 A. Z
Montreal 1.6% 193,190 188,016 2.8%% N4 S- x" Z1 p2 v( q+ A
-------------------------------------------------------------- a* {5 O3 Q) N& Z" V
Ottawa 4.5% 181,083 172,250 5.1%- d5 ?+ Z+ R7 i0 d# \9 ?) \
-------------------------------------------------------------
( \0 r! |: e; \) ?/ o Toronto 1.4% 252,088 242,918 3.8%0 a2 m1 C/ Q/ U: s& m/ t" i
-------------------------------------------------------------
, Q! R2 K) W+ {- |- l! V& r Winnipeg 12.0% 105,648 96,008 10.0%% l: U; `9 D2 W/ I, W% b
-------------------------------------------------------------& A7 `2 a* [( F
Saskatchewan 9.7% 106,250 101,000 5.2%
% y! E5 A s! D; t5 @. C* } -------------------------------------------------------------
/ K7 {" w# ]5 t: }2 w* s9 r$ r Calgary 53.5% 245,844 153,867 59.8%1 s) O8 G+ C+ X' u5 y1 S
-------------------------------------------------------------
4 W) o* b9 b% `6 g2 K# \" P4 B Edmonton 53.1% 200,433 131,500 52.4%
) x$ x' Q9 F: { B+ b5 N -------------------------------------------------------------
* {/ M5 Q, r6 s0 w Vancouver 13.8% 366,250 323,250 13.3%7 V5 p, f- n0 `+ a, B+ r: K
-------------------------------------------------------------! I1 a" l0 X3 n/ A
Victoria 3.1% 229,000 220,000 4.1%
- B% F) S; \& W) _ -------------------------------------------------------------! g" m+ O1 x+ X5 x
National 13.2% 211,562 185,296 14.2% n6 F( R9 R# k
-------------------------------------------------------------
( g4 A! v) r" `4 B* ^& k >>
$ z# [3 {/ T. f" Z1 ?% @
9 Q$ Q; Y, R3 n1 s0 c, g5 D Average house prices are based on an average of all sub-markets examined
/ F& O" t$ h; c/ {: p5 ain the area, except for the smaller markets of Charlottetown, Moncton, Saint
& t4 ]0 }2 A# J% g* p/ A1 w# z! oJohn and Victoria.
! a/ c) d7 D" K! k8 [0 c
0 p H; T1 R0 f9 K! \. n The Royal LePage Survey of Canadian House Prices is the largest, most& R& n& q7 k6 l/ x( w2 {) q- S) I
comprehensive study of its kind in Canada, with information on seven types of1 K0 s, E/ l0 Y3 d* t
housing in over 250 neighbourhoods from coast to coast. This release
; b1 ?- H! w0 B5 S- ]" zreferences an abbreviated version of the survey, which highlights house price
+ ^' L) r, Y* ?trends for the three most common types of housing in Canada in 80 communities1 b5 K+ v: V3 \; G' i B
across the country. A complete database of past and present surveys is1 y5 r+ m5 V6 A; ^3 q, o; B
available on the Royal LePage Web site at www.royallepage.ca, and current+ c" I% y) p, w/ i3 A
figures will be updated following the end of the third quarter. A printable8 q$ a- D" p7 ~4 u
version of the third quarter 2006 survey will be available online on
7 m. A7 n ]5 J$ YNovember 15, 2006.6 r! K6 |7 l2 u! ?
Housing values in the Royal LePage Survey are Royal LePage opinions of( h: [1 g+ L7 e2 Q* ^: g
fair market value in each location, based on local data and market knowledge7 U: ^9 h2 Z& s l4 y9 P8 Q5 M
provided by Royal LePage residential real estate experts. Historical data is; G. l- d) t9 C
available for some areas back to the early 1970s. |
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