 鲜花( 0)  鸡蛋( 0)
|
Canada's housing market both vigorous and stable
! [1 t& w* a- e8 |- l/ J
r" d4 Q& ^" T- Country's market poised to show growth throughout 2006 -' d* a$ t- q! F* d7 Z+ ~; L
, z* a: v& P- V* H/ \6 b) i& `3 E
TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market
2 c$ |# O1 p: X1 v5 B# q8 Gexhibited moderate price increases and stable unit sales during the third- W& D. s1 F5 Y$ G1 ~& f
quarter. Wide regional variances continued to be the dominant characteristic. ]1 h& t3 d5 z; `( P( {
in the market, exemplified by frenzied levels of activity and double digit7 g* S8 m& t& L3 p7 d; ^
price gains observed in the energy and commodity rich Western provinces, and+ T6 L. Z4 H6 a9 K
more reasonable sales volumes and moderate price appreciation in Ontario,+ u! a; `1 {4 \& G) h `! V
Quebec and Atlantic Canada, according to a report released today by Royal
* W. Q6 O1 f$ P' z- L: DLePage Real Estate Services.; a0 @: y3 Q3 w/ Q1 X+ C
4 }, W% ?! O" F& J Nationally, market trends established through the first three quarters E+ G) z c/ N$ I& `
are forecast to continue for the remainder of the year. Robust economic2 j3 _+ f& T2 F. w) \9 R
conditions, low unemployment rates, modestly growing salaries and wages, and
F* p/ t( h; D( Fsound consumer confidence contributed to the overall strength of the' u5 |0 f# P8 O
residential real estate sector.
5 }( r+ M& {6 E# a8 V
# K0 Z# l `$ B9 S* H% I Of the housing types surveyed, the highest average price appreciation! o3 f* |2 T, W& K& ^! M9 d
occurred in detached bungalows, which rose to $300,365 (+16.3%)1 H# n! v7 a1 t9 c
year-over-year, followed by standard condominiums, which rose to $211,562
+ `: _6 s% l7 A1 M/ i4 Z(+14.2%), and standard two-storey properties, which increased to $365,380, `- g6 x. o. K
(+13.2%).4 W+ X7 n4 {% k! @" F0 s
- P. ~) _& ]9 t, [. k
"Canada's sturdy housing market continued to demonstrate steady growth5 I' C% ?- s# N, y- V% s
during the third quarter. For all but the west, we have moved on from the
8 b3 a+ S& ]& g. }- b) m- s) nfrenzied expansion that characterized the first half of this decade, and are' T- t0 r$ d7 C& T9 E
poised to show continued growth at a more moderate pace," said Phil Soper,0 s- G% k% D# x; ~ n% L( C
president and chief executive officer, Royal LePage Real Estate Services.
9 {, U- P& L- m$ r$ k; H! }/ W8 ?"Gone is the sellers' market that we have lived with for some years. We1 H4 A# p: |& \* U/ U. f
welcome the more reliable conditions that are characteristic of a healthy
: ^" Y6 \2 Z) C& z) b% mbalanced market."
' Y8 e! }- j% y" [! w
+ [9 b( @! U1 g( K% _1 r Despite the double-digit rise in average national house prices,
3 S: {3 x' W* a R$ Pconsiderable regional variances were exhibited again this quarter. The shift; @, u( g5 l: \9 Y: l7 D
to balanced market conditions, which began in late 2005, has continued
- y9 y* C" H. `( d* G2 e9 vthroughout most of the Central and Eastern regions of the country. In the core
9 L7 X- E4 x6 A* Kenergy producing western provinces, the combination of very high in-migration,3 N% z; O, X$ b% i/ U7 g* }$ `9 j
manageable affordability, and a shortage of inventory has driven record/ X1 I) ^: j J. e
breaking price appreciations.7 J$ h: Y/ \1 O `# g. D# a
: U+ C% ^, A2 _# x, f- {
Echoing the second quarter and supported by Alberta's rapidly expanding# c7 Z" \6 f. ?* U) m9 l% p
economy, Calgary and Edmonton led the charge of Canadian cities with the- @- |" E1 T, o
largest house price appreciation in all housing types surveyed.% Y# } a9 r1 E" W
; O# ^+ ^! O; q5 V7 }3 F+ R8 b In Ottawa and Toronto, growth remained steady, supported by solid
0 |. q- G2 F! f1 Weconomic fundamentals, an increase in available inventory and strong consumer
3 R9 S6 R$ [4 z( ^. Y. rconfidence. While the pace of price appreciation in Ontario leveled off# h+ U3 ?' }% Z3 X6 S. U; e u) e
slightly, the province's real estate market remains poised for modest growth.! F9 f* M- ?/ b& ^* ^. K
In Atlantic Canada, new housing and condominium construction offered buyers# A% E0 u& @. w$ s1 \, W
greater selection at more competitive prices, resulting in a slower rate of
5 A- ?' v. ]2 ]price appreciation when compared with 2005., r& _3 r. z. }0 o
j3 F2 E6 R0 D) g
While the pace of growth in Canada has slowed, the domestic housing: |) j- b% S- {9 \* K; t% N6 l; ] P
market is expected to outperform the American market. The economic and
; V6 Z" |/ A9 z0 {; ~, Sfinancial fundamentals driving the residential real estate sector in Canada
! r. v* z/ ^0 H/ S3 ^; hare markedly different than those found in the United States.
: G0 s8 x! ?# w& N, D7 ~
; b! K- [) p$ [- N( H( m! ~/ Q1 b Added Soper: "Canada's housing market is likely to outperform the d% B8 Z- s6 R; y# n- v5 x
American market through 2007. A number of factors are working in Canada's
% O- w3 K4 ]+ p) ]2 ~7 K# kfavour, including healthy personal and governmental debt levels, the
, Y! P) K; U( Irelatively modest rise in interest rates in our country, and general
3 t( x# l* G$ E0 v1 zaffordability in our major cities. In addition, Americans are now seeing the7 B# Y4 a; S }/ Y% J9 n6 n0 p
downside of a tax system that encourages maximum homeowner leverage, and E1 f, o3 G# x
aggressive financial products such as zero- and negative-amortization9 h& n6 \6 }) l. J" ~9 x
mortgages that work only in a high price growth environment."' d; M+ ~9 i4 U
. P( o5 V- X2 }% M5 F4 Y, \4 B
<<" O4 g) g3 O! H5 a; o _# p& B: o9 \
REGIONAL SUMMARIES
$ w7 t# V5 m- y9 W7 | >>6 z- M" Z* X6 U- g
' d$ O, c+ }4 q# R% |4 ?( p
Balanced conditions continued to characterize the housing market in
. W; C1 t& \* Z7 c& EHalifax, as significantly higher inventory levels helped to moderate the rate
* I' }# G" e/ Xof price appreciation. Buyers were increasingly choosy, taking more time
0 a2 W/ w8 K9 ?7 @# |looking for newer, low-maintenance properties that were not in need of
( m% m, e% M" N# D9 n; Q0 ~2 Nrenovations.
$ {2 o( ?3 N/ P% x7 M9 {1 J9 X. B0 Y) Y7 c9 O
The housing market in Moncton remained healthy and strong as a slight! T* {5 i0 o4 p+ e& z
increase in inventory helped to moderate the rate of price appreciation
9 {8 B/ ?7 w+ a% F) c- {2 B, \compared to the same period in 2005. Activity was brisk throughout August and
' Q2 S) U; I( T4 j0 zSeptember and is expected to remain this way through the fourth quarter.
0 s- S# F3 n5 X! j3 W, G+ F+ ?+ _- v1 y( r( e) v
The housing market in Saint John underwent its traditional summer; I" h0 i/ e' I! W" |) t
slowdown in the third quarter, with activity picking up towards the end of the B" r+ S- z: {) R
quarter. The local economy continued to thrive, as construction on a new) a& [" ?$ ^5 ^& N
600,000 square-foot shopping area has begun, bringing several new box stores
2 e8 J2 d1 L. S! ]8 v: {to the area. Buyers have begun seeking less expensive fixtures for their homes( h+ _- P+ }' A# M
and are instead opting for more affordable housing options.
9 N, ~2 `6 M/ X$ C( s8 \3 ~# l3 A% k8 @
In Charlottetown, the housing market started to move towards balanced5 k! O! ?8 j0 }" o
conditions, as some sellers had to begin to lower the asking prices on their
. K! }2 b8 L$ r2 v; vhomes to make them more competitive. Activity from out-of-town and US buyers/ [1 I* j9 Y$ b+ M. c4 M
was down slightly compared to 2005, likely attributable to the strong Canadian
* X4 D) n# G& r. X3 s* odollar. Inventory levels began to creep up in the third quarter, providing9 D7 f% a: O% P% r- \
buyers with more options when looking for a home.
7 \ {8 \& v( X! I0 T1 G- M* J4 j. L8 H
Activity in St. John's slowed slightly in the third quarter, particularly
6 M$ u7 W3 m, k m& }among higher-priced properties, where there was a slight over-supply of homes
0 I/ u5 s4 f/ B! s6 ppriced over $200,000. Listing periods have increased when compared with 2005,
5 P5 ~) w& q/ m( W7 Zas some of the pent-up demand that had characterized the market over the last
2 A" \1 g* F8 b1 cfew years has been satisfied, resulting in more normal, balanced conditions.- a" r9 l9 Q, e. x3 x5 U
- e& b' p( J( ` Montreal's housing market recorded modest increases in average house8 c2 v: a, g6 |+ z; L3 B
prices, due to a slight seasonal slowdown in the third quarter as inventory, ~" a: w) L, P6 X
levels rose. Part of this can be attributed to the fact that many renting
: Z$ x' n* N3 j4 ~& h6 L0 pfirst-time buyers were motivated to close on the purchase of a home by July 1,0 P4 A$ l/ e$ U) q# t
when rental leases expire in Quebec. Once this date has passed some of the c# d" I9 E" X+ x9 Z" \0 f' g
pressure is taken off the market, allowing buyers to visit more homes before$ }0 H; {8 J9 w8 y
making a purchase.
) y6 L4 j6 y+ _2 M0 {( K- G3 G5 R# h x# M$ g. f4 c
Ottawa held its position as one of the country's most stable housing
0 m! c. r4 R" p. t) b/ y+ `markets in the third quarter, reinforced by a vibrant local economy and strong, |' P' z9 F9 k6 {9 | ^' `3 G% a
confidence, resulting in modest increases in average house prices. The city' M& c# Z' q. N) @, V# k9 w
centre remained a bright spot in Ottawa, with homes in this area attracting/ L) u4 F5 i$ M0 d2 S6 v s L( v
attention due to their convenient location and proximity to downtown
" t. x, l: b7 W0 x1 }amenities.7 Y# |# m; F; q5 T+ f1 N3 B
7 H; C. F7 \2 U* p; k
The housing market in Toronto sustained healthy activity levels! c2 n4 J2 _3 @: J( c" L, V
throughout the third quarter, as a strong economy helped to maintain demand
! J9 O0 g( B; x. E9 Sacross the city, causing average house prices to rise moderately. Toronto has3 O# J5 x5 Z! J5 o
continued to experience modest growth in average house prices, and has been
2 c5 Z$ C6 O: u" d sdriven primarily by purchasers who are buying homes as their principle6 Z9 o4 m% q2 @: F2 t
residence, rather than for investment.) H7 e& ~) P7 P, f, x7 |
/ p! _/ s4 _. b G* ` The vibrant Winnipeg housing market continued to show its strength as
9 R6 R; K/ L1 i9 w: qhouse prices rose during the third quarter. The booming local economy resulted
1 v6 y9 f Q* q" S2 e) N7 ^* W9 min a historically low unemployment rate, helping to bolster consumer
+ j8 ~% t* `: B; l1 u1 mconfidence and Winnipeg's ranking as the city with the lowest capitalization
: L* k8 |5 e9 ^1 Q7 irate among the country's larger cities - helped to encourage buyers to enter
% B3 v6 } Y, Z. V3 Ythe market.
' B: H6 Z* K. C/ d7 h, x# N8 r( Y, B6 g0 J% q f$ d* i* i9 B$ b$ G& T& Y8 S2 N
In Regina, the market experienced a slight seasonal slowdown through3 V* h5 M* a8 I
July, as there were fewer purchasers in the market due to summer vacations. In: E, D- _4 H; F9 V
August, activity resumed to the busy pace previously seen in the spring9 e7 }+ A5 V, u( n1 t6 g) `
months, as the influx of purchasers made it more difficult to find a home due
1 c0 C" a, I1 J$ @to the shortage of available inventory.
" m4 O6 X0 `0 @2 }1 A+ q) ~9 P, U, J/ `/ i+ E5 L' }7 L' U
Activity in Saskatoon remained brisk as the market maintained its
5 D. S9 {' k& x8 Kmomentum from the busy spring sales period. The economy in Saskatoon remains( b1 ~+ E. c5 p/ N
vibrant, as employment opportunities are abundant with many businesses' ?1 o$ f+ J* @, [6 x5 Z" c. U, n0 y
struggling to make hires and having to recruit outside the province.9 k$ I8 w8 c3 ~" G6 v. O
; H5 Y! A F- D4 H, X/ A
Calgary's housing market recorded blazing average house price increases
! I e0 B8 W! @8 win the third quarter, in all surveyed categories. The burgeoning economy, low0 s( f$ {; u ^7 I
unemployment rates and low inventory levels remained the leading factors that
. Y3 j" H: C" | E) u. Xpressured Calgary's house prices upwards. However, regardless of the soaring
; a, R) p5 y( P* d. n) Cprices that characterized the market - even during the typically slower summer
, O2 O+ l& {& d9 r1 a* Rseason - it is expected that activity will become slightly more balanced, as7 _6 Q+ g6 p& E$ j I8 {# e
buyers are becoming more reluctant to participate in the frenetic activity.+ f# ^+ P( W- g0 N$ k( U9 a
0 T/ C: y1 \! R% Q' f2 b
Edmonton's booming local economy continued to thrive in the third quarter$ n( f" D5 e1 S3 E, o9 ^) X6 l) U
as activity in the oil sands north of the city continued to flourish. Edmonton2 x, v+ G" D# X0 B3 d
remained the hub of activity for those coming to work in the oil industry,5 a9 \* ~- u4 i# h
maintaining tight inventory levels across the city, resulting in prices4 \! U5 U4 A3 p% n+ A4 W8 J
increasing at record levels. However, as inventory levels continued to improve
9 d9 T8 v9 j3 ~in the third quarter the rate of price appreciation should moderate slightly* c! c' i8 h; J- T' d
towards the end of 2006.
# x! k8 n: L% ^9 {/ C; f
' E C" k- i4 |6 m) E# MWhile Vancouver has seen a slight reprieve from the severe shortage of
$ a, E! z# L S' X& {1 q5 Yinventory that had previously characterized the market, supply is still unable7 b. m+ J, f5 {% I, o- b9 T; z
to meet demand, driving house prices upwards. Vancouver has a very diverse# s9 F5 r8 X" E& C0 x% Q$ C0 a
group of active buyers - from first-time home buyers to baby-boomers to3 S4 V0 y5 o) Q9 _% B
foreign investors - all of whom fuel the demand for houses, placing added8 @- E" O& Z2 w ]
pressure on tight inventory levels.
! Y3 J+ e# T' e2 N+ L3 ]1 x* g' ~9 q
Victoria's market is vibrant and supported by strong economic' Q) x" E7 L6 U! E/ Q3 x9 h
fundamentals, fuelled by a booming tech sector and a migration of young people
& w! Y% ?' J6 P3 b7 ninto the city that has continued to support the area's house price increases;- V# @2 a$ ]+ S
while increased inventory levels have afforded buyers more time when searching2 }% P( I0 ?! s
for a home, helping to normalize the market's pace.0 G# x6 S# \* K/ U2 j; K
$ q2 F3 @# x. q: {) r <<* T/ C0 d" X$ ]
Survey of Canadian Average House Prices in the Third Quarter 2006
7 X% K3 b" d% E3 h/ X
; G8 o ?( f1 I7 [4 I: l, ^ -------------------------------------------------------------------------! }9 G; ~; s$ F. p7 l" r
Detached Bungalows Standard Two Storey
_6 L) {/ k1 |0 t% d -------------------------------------------------------------------------" j& W3 `" t' I0 y0 P, c% Q* P1 g% p
2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q39 S+ A% y1 F" H( j3 a2 e
Market Average Average % Change Average Average
! r- N L) ^ v1 ~% k! J0 ^, k5 c -------------------------------------------------------------------------
- J* E& V. k. I: J( ? Halifax 186,333 173,333 7.5% 198,667 199,000( N l' `7 v1 s5 f- p
-------------------------------------------------------------------------4 ] g1 j2 H4 P3 P. Z2 @& I3 n
Charlottetown 145,000 141,000 2.8% 175,000 170,0003 n6 ~; C+ g! ?5 ?
-------------------------------------------------------------------------
) K6 r1 G* V" i2 V+ p Moncton 135,000 127,000 6.3% 129,000 123,000. L) l: s i ^; Q( m
-------------------------------------------------------------------------2 ?2 F" v b1 Y. ~* Q; ^' b3 |+ c
Saint John 141,200 142,900 -1.2% - -- D5 R6 I: h2 f9 t- }. \( q6 \4 X1 s
-------------------------------------------------------------------------$ Z3 C0 O9 y, p* E
St. John's 143,667 142,667 0.7% 200,667 202,333, L4 Y+ ?" m& o/ I0 i$ H4 X: K
-------------------------------------------------------------------------' `/ B9 d4 m3 v
Atlantic 150,240 145,380 3.3% 175,833 173,583
" C: A1 v( I% {" }, ~ -------------------------------------------------------------------------
+ {+ O I$ Z% F! F Montreal 213,691 203,500 5.0% 321,141 316,185
' |9 O0 I c! W P -------------------------------------------------------------------------" i2 A5 U) R* l; Z a
Ottawa 290,083 278,417 4.2% 285,667 273,250; W. ^' v7 N/ }9 X
-------------------------------------------------------------------------5 m& }. U5 u8 A4 o4 Y8 v
Toronto 373,368 355,882 4.9% 481,523 474,766
# `2 \3 W! H, E' G; z H% U -------------------------------------------------------------------------/ p, ^; @) o- s/ N( D" D
Winnipeg 181,579 159,860 13.6% 202,337 180,707 c1 p) t: N6 _- h
-------------------------------------------------------------------------- B0 I Y# i, X ?8 s
Saskatchewan 170,667 156,083 9.3% 182,600 166,500
5 I/ W) n5 R, P0 B, ?* } -------------------------------------------------------------------------, b6 f+ ~5 r5 Y" Z- {% d! o6 e# N
Calgary 395,067 252,411 56.5% 405,778 264,3899 p( }5 ]# H6 U) _
-------------------------------------------------------------------------
) L+ C) v7 ]9 [ Edmonton 286,857 194,857 47.2% 316,429 206,714
. U7 l/ N3 B2 I: k0 ~ -------------------------------------------------------------------------, Y% G) j2 a. e7 o1 R" g
Vancouver 704,250 601,000 17.2% 794,000 697,500
/ ~) k( ^) q* `9 ~+ g- B -------------------------------------------------------------------------! L+ }2 o6 S6 g* o
Victoria 375,000 348,000 7.8% 403,000 391,0007 x. K4 A! x6 H' X" Q, _/ A/ T$ e$ C
-------------------------------------------------------------------------: n7 e4 z7 A( E7 s0 D
National 300,365 258,202 16.3% 365,380 322,860/ q& `. v" |) W! }8 V; u7 B/ J
-------------------------------------------------------------------------# L9 R/ _2 B' ~9 N
* u8 f6 @$ P5 ~: O7 D4 [
-------------------------------------------------------------
" F0 _9 m2 c" g! G7 y" q+ {7 { Standard Condominium
: _7 g0 f: g' M -------------------------------------------------------------3 B. V9 }' c' @2 w
2-Storey 2006 Q3 2005 Q3 Condo
3 ~' \/ g2 \7 ?8 j5 j( V Market % Change Average Average % Change
) u7 `! C' s0 z" f" v: [ -------------------------------------------------------------5 C' A& q; w! c' Q
Halifax -0.2% 142,000 103,000 37.9%
$ i% K. i) S4 X/ i8 j -------------------------------------------------------------" o+ q+ g& T: x! b
Charlottetown 2.9% 98,000 98,000 0.0%: T3 |4 b; D" j) J3 S/ A! r; r
-------------------------------------------------------------
, U- Z% O/ M9 F& y5 a, ] Moncton 4.9% - - N/A m$ ?: L8 I) }' x
-------------------------------------------------------------0 b* _8 h( h+ r2 E1 h1 p: |
Saint John N/A - - N/A8 y& I' W7 N* F7 m- w+ C0 q
-------------------------------------------------------------' D/ a G1 m) P0 f* d( J, g
St. John's -0.8% 146,333 145,667 0.5%, \( J D5 `( O
-------------------------------------------------------------
( ?( e! Y8 F% T) |0 n" H Atlantic 1.3% 128,778 115,556 11.4%
+ [& N8 h0 y6 U7 v: [# s" D) H) r ------------------------------------------------------------- {( N0 K' a3 ]
Montreal 1.6% 193,190 188,016 2.8%
3 T( v6 z$ U2 y" Q4 Y4 [( P -------------------------------------------------------------
1 j; [ _. e' A Ottawa 4.5% 181,083 172,250 5.1%8 ~! n$ @" x! F$ R+ v0 j
-------------------------------------------------------------. m5 Q; @# `! j5 @; q. I
Toronto 1.4% 252,088 242,918 3.8%
0 z3 y0 |0 d9 w/ I6 [/ X, l9 [ -------------------------------------------------------------
. \; d z r! H6 f. Z* S/ [ Winnipeg 12.0% 105,648 96,008 10.0%" |9 G1 M( n: j/ J5 v4 M/ G
-------------------------------------------------------------
" @0 x6 S6 Y) d4 W5 N Saskatchewan 9.7% 106,250 101,000 5.2%
7 r' K0 h+ h4 Z" d- P -------------------------------------------------------------
3 k9 f0 ]! C5 w Calgary 53.5% 245,844 153,867 59.8%
/ H9 E5 u# l1 z9 l8 N4 X7 Q4 j O* W+ r -------------------------------------------------------------- v1 ?. Q* m- U
Edmonton 53.1% 200,433 131,500 52.4%3 J; z0 b0 `/ Z- o
-------------------------------------------------------------* E$ {8 |1 U/ ]% ^! l$ p" V8 |
Vancouver 13.8% 366,250 323,250 13.3%) F- L i3 M; k" f0 j b
-------------------------------------------------------------
8 U a4 n2 Y. I+ p7 v Victoria 3.1% 229,000 220,000 4.1%* Q k5 d( t7 R& G9 h. R
-------------------------------------------------------------1 A9 e& I+ Q: o8 p' O3 i& `7 v
National 13.2% 211,562 185,296 14.2%
" B/ F% a( v6 k2 F$ M5 ? -------------------------------------------------------------
( C# P2 D. ^, w/ @* [ >>
q% F$ w9 N% ~
" R, h ]: w' c) K$ x( [' _9 l) n Average house prices are based on an average of all sub-markets examined# D+ J7 R8 G( l! I* D" G1 s7 \' p: A
in the area, except for the smaller markets of Charlottetown, Moncton, Saint: }) h) l, [& f K
John and Victoria.
$ K4 ?* e) A- X8 Z% y& l& t% ~; _0 v: |
The Royal LePage Survey of Canadian House Prices is the largest, most, j& Z \, V; N2 `
comprehensive study of its kind in Canada, with information on seven types of
5 u | i; _: [- q: u9 Shousing in over 250 neighbourhoods from coast to coast. This release
! |% K' s& z9 ]$ j4 a8 S% Areferences an abbreviated version of the survey, which highlights house price
% J9 A7 O( K* Qtrends for the three most common types of housing in Canada in 80 communities
0 i! @% a4 z2 a9 racross the country. A complete database of past and present surveys is
# R$ D: ^; t' }, iavailable on the Royal LePage Web site at www.royallepage.ca, and current& Y+ W- R- ~$ p; @
figures will be updated following the end of the third quarter. A printable7 `" X# s3 j& b: Z! T6 C6 l$ T# d
version of the third quarter 2006 survey will be available online on2 I8 {' }1 @) m. S# e6 a
November 15, 2006." I9 \/ N7 d* x* _0 d2 o
Housing values in the Royal LePage Survey are Royal LePage opinions of8 _, A0 a8 Q7 l5 L. b1 ?
fair market value in each location, based on local data and market knowledge
' g# R; {" j( H) E% S4 dprovided by Royal LePage residential real estate experts. Historical data is9 L! n, t7 D% l" s0 G
available for some areas back to the early 1970s. |
|