 鲜花( 0)  鸡蛋( 0)
|
Canada's housing market both vigorous and stable
; a# T) }8 @% l1 s2 \ k- y% `- B0 p. l
- Country's market poised to show growth throughout 2006 -
0 }7 @3 t3 j" ?4 U1 f1 y7 t& c. x1 ~- j$ A
TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market
; Z8 H0 d) J% wexhibited moderate price increases and stable unit sales during the third
* r. {$ z n7 D' uquarter. Wide regional variances continued to be the dominant characteristic: G0 ~! P* b% t
in the market, exemplified by frenzied levels of activity and double digit
% }, J% r2 m! J9 h) H" Tprice gains observed in the energy and commodity rich Western provinces, and
( B3 Y+ H2 O. i: Umore reasonable sales volumes and moderate price appreciation in Ontario,
7 h5 H* B& ~/ W) GQuebec and Atlantic Canada, according to a report released today by Royal+ Y8 k& \, `; S* f X
LePage Real Estate Services.
5 [% G2 ^! k7 E9 b5 t3 H5 A8 z E. |
Nationally, market trends established through the first three quarters
" |$ E1 d+ l. `( B, S2 Mare forecast to continue for the remainder of the year. Robust economic
( V# Q7 @: Y6 `$ o2 e7 M& hconditions, low unemployment rates, modestly growing salaries and wages, and
7 \/ E) }$ E/ I' A) t2 C/ s/ Tsound consumer confidence contributed to the overall strength of the7 y0 }; R {: i% z* r- ~3 Z
residential real estate sector.
2 N3 k6 X4 r+ a8 V/ F1 [
* u8 ]6 x& r6 `# G, B Of the housing types surveyed, the highest average price appreciation
. j- s* M) W) hoccurred in detached bungalows, which rose to $300,365 (+16.3%)
+ b$ `, k# p3 c( e: H6 ?; Y% pyear-over-year, followed by standard condominiums, which rose to $211,562
$ c/ |* I& h+ N( A% v c$ d& T(+14.2%), and standard two-storey properties, which increased to $365,380
' T* J1 y- n& y: `( }( U7 }# M(+13.2%).9 G. Y* D1 l& L0 \/ R T, U
$ r) W$ S; n- x8 n
"Canada's sturdy housing market continued to demonstrate steady growth
+ e. m6 M3 a% Z, {+ r. Gduring the third quarter. For all but the west, we have moved on from the
' ]: u: Q* Z: Rfrenzied expansion that characterized the first half of this decade, and are
5 R8 V& Z0 R* J8 d2 `poised to show continued growth at a more moderate pace," said Phil Soper,
4 ?% ? @$ ~0 C. D6 L" t: ~president and chief executive officer, Royal LePage Real Estate Services." I+ i7 c+ T. x: }
"Gone is the sellers' market that we have lived with for some years. We/ P6 _0 J* b6 d4 x1 A. l7 v8 O0 h
welcome the more reliable conditions that are characteristic of a healthy
% o& w: o2 z2 d+ |- n$ T# Zbalanced market."' L% g' x2 Z9 L+ I" |( b
; v6 W% m+ H/ S; a( Q6 v
Despite the double-digit rise in average national house prices,
* C! r8 t. _. \2 U* Cconsiderable regional variances were exhibited again this quarter. The shift) C- g5 e' q" E0 K& }0 r h4 I
to balanced market conditions, which began in late 2005, has continued$ b! w9 {! [" d
throughout most of the Central and Eastern regions of the country. In the core( y7 p; J+ j$ A4 c. p
energy producing western provinces, the combination of very high in-migration,
. p( U, \ q. d# [$ ~manageable affordability, and a shortage of inventory has driven record) }$ J1 e- B/ |0 g
breaking price appreciations.% ^2 ]% u: N. \" e
/ V/ a+ a$ v3 p- @1 a8 r2 h Echoing the second quarter and supported by Alberta's rapidly expanding
- c5 l9 w9 O4 ]5 p) c" X+ ?economy, Calgary and Edmonton led the charge of Canadian cities with the. K3 f2 ~0 w k, d3 G% b( d* e
largest house price appreciation in all housing types surveyed.* H( f. D* f# d B' p" I" L
+ b" M) e# O" ~
In Ottawa and Toronto, growth remained steady, supported by solid! f5 D# w7 y. R5 t
economic fundamentals, an increase in available inventory and strong consumer3 c. ?) s9 f' }- ^% T
confidence. While the pace of price appreciation in Ontario leveled off
1 F3 I3 }( y- N" S% m. H( fslightly, the province's real estate market remains poised for modest growth.
- [7 T" W- v/ p+ J' m! F( yIn Atlantic Canada, new housing and condominium construction offered buyers
0 h! d- P& j8 Egreater selection at more competitive prices, resulting in a slower rate of$ g# ?* e# v5 K. K
price appreciation when compared with 2005.- }/ \' S' n) e! C$ W
. Y/ s; |8 J b! y While the pace of growth in Canada has slowed, the domestic housing; J0 q+ s/ l1 F
market is expected to outperform the American market. The economic and# l# Z( D8 v" }6 B: n
financial fundamentals driving the residential real estate sector in Canada
5 L& S* X8 \, b: _" z: L% Kare markedly different than those found in the United States.: m5 {5 l2 o4 e( w; l; `* H" M
( r7 w- _+ e7 m+ ^! z5 t' w9 ?( z2 S0 f
Added Soper: "Canada's housing market is likely to outperform the) X7 m5 W; S! R7 G* K
American market through 2007. A number of factors are working in Canada's: p: `! k- T6 S3 g* r8 h+ v' m
favour, including healthy personal and governmental debt levels, the8 X% \7 t3 ]" f% n9 f
relatively modest rise in interest rates in our country, and general
! i7 b9 l# `, s' [2 ]: l% aaffordability in our major cities. In addition, Americans are now seeing the
, D5 S9 b1 D3 t8 M! I: |downside of a tax system that encourages maximum homeowner leverage, and e, e* w$ @& u9 o( U& I" N5 K
aggressive financial products such as zero- and negative-amortization1 S0 k0 ]9 `6 B! `% e
mortgages that work only in a high price growth environment."' X7 t. \; g: K# w( E5 ~" Y/ E) m
4 u( g& I, R- K0 K0 f <<+ F0 T+ H( V' p7 I
REGIONAL SUMMARIES) }; G- S( e* o
>>. @$ q) \% b# k1 i+ n% O
8 C4 u' O1 w; [! {9 r
Balanced conditions continued to characterize the housing market in
7 ~+ b4 J0 d0 t8 p- _8 ~Halifax, as significantly higher inventory levels helped to moderate the rate3 Z3 r3 u% M: |: M
of price appreciation. Buyers were increasingly choosy, taking more time H9 p! U& M: c/ f4 B9 W: S: h( d0 Z
looking for newer, low-maintenance properties that were not in need of
) Z: d- \9 b2 w5 A/ Z( ]renovations.. I6 f' S! E( ^3 N$ ~
) c: q, V# c. M The housing market in Moncton remained healthy and strong as a slight
9 ]- t5 c2 z, v& lincrease in inventory helped to moderate the rate of price appreciation- r. O* s; ~+ b" ?1 _% u8 c: U: M7 [1 l
compared to the same period in 2005. Activity was brisk throughout August and# A6 T; b' v6 ?4 u% Y7 |
September and is expected to remain this way through the fourth quarter.
; P" ^* a+ A# H. w( K. M7 A0 n+ z$ C' L' Q
% q" G' S* a! J5 l& o The housing market in Saint John underwent its traditional summer
* ?# J5 C# D H% I3 t& A5 _/ ?slowdown in the third quarter, with activity picking up towards the end of the8 g$ S) D0 _( X
quarter. The local economy continued to thrive, as construction on a new
4 N! D' n+ C/ |5 M x9 V2 h600,000 square-foot shopping area has begun, bringing several new box stores: {9 k1 |1 h% F: K3 ~, B* c, Q
to the area. Buyers have begun seeking less expensive fixtures for their homes0 t: b k3 U5 ^4 b- d* d
and are instead opting for more affordable housing options.
9 G9 o* T. g0 P m+ y: b5 g! \& r! F1 Z
In Charlottetown, the housing market started to move towards balanced- @/ y; L0 w; Z. v2 B ]
conditions, as some sellers had to begin to lower the asking prices on their
% h4 p9 X& D4 d8 G0 p5 {0 _: k' U$ Whomes to make them more competitive. Activity from out-of-town and US buyers0 C8 R( {. N; ]; F& j
was down slightly compared to 2005, likely attributable to the strong Canadian
2 p l* c+ A8 M) ?dollar. Inventory levels began to creep up in the third quarter, providing4 x, r5 V. m5 U& N. o
buyers with more options when looking for a home.0 O* J6 [9 X1 g9 P
! u* c& K# c t1 i Activity in St. John's slowed slightly in the third quarter, particularly& }3 Y; ?& |/ x/ z7 L
among higher-priced properties, where there was a slight over-supply of homes9 k6 l6 H% b9 Y* w. k
priced over $200,000. Listing periods have increased when compared with 2005,
. |6 L& F/ s: K" M+ p* ?5 D5 l4 Mas some of the pent-up demand that had characterized the market over the last# @7 N1 [; o% i: x' p8 Q7 F
few years has been satisfied, resulting in more normal, balanced conditions.
& v, n& \% {% T( j0 I w$ A5 A4 L) n) ~3 R) W5 e2 B- v
Montreal's housing market recorded modest increases in average house" U. G& }" S+ e4 Z8 U* C, \- q8 `: }
prices, due to a slight seasonal slowdown in the third quarter as inventory- w0 Z8 ^# m0 R a, _: W
levels rose. Part of this can be attributed to the fact that many renting/ i0 G; x- K, S) T. K* B$ f+ d# N
first-time buyers were motivated to close on the purchase of a home by July 1,
8 i- f3 S4 u1 ?4 h1 |2 twhen rental leases expire in Quebec. Once this date has passed some of the% E( J0 B" x! w- {/ v, Y- F
pressure is taken off the market, allowing buyers to visit more homes before
3 n% i7 k" l, k$ i* R x7 zmaking a purchase.
, i" c) {4 h3 R4 k
. |# Q. x* {3 |0 Y" M) ?, N- V+ }7 g Ottawa held its position as one of the country's most stable housing, F3 w! I. {+ A, X9 J
markets in the third quarter, reinforced by a vibrant local economy and strong
- ]/ w$ M$ z% p- Iconfidence, resulting in modest increases in average house prices. The city! h8 \( e" l6 A; M3 Q6 f
centre remained a bright spot in Ottawa, with homes in this area attracting
4 Q5 v3 R7 h* E7 F& C8 p4 kattention due to their convenient location and proximity to downtown+ N# l/ ^/ R% j8 |3 I% I1 n
amenities.& o5 l* \4 |4 Z4 g0 u
' C2 \. K! f5 O- {; r' \7 }
The housing market in Toronto sustained healthy activity levels5 }/ _+ h9 R" T9 K+ V2 `8 |8 N
throughout the third quarter, as a strong economy helped to maintain demand$ [( z7 f5 q; e z
across the city, causing average house prices to rise moderately. Toronto has
. r3 t' V9 m) Z: ccontinued to experience modest growth in average house prices, and has been
1 e. q2 _5 k7 h; Ddriven primarily by purchasers who are buying homes as their principle" Q. m! [8 ]/ J% i/ E
residence, rather than for investment.
6 W9 U# U- c' x: @! p* c. f1 B3 D2 v6 T
8 c9 A7 f$ Y. T The vibrant Winnipeg housing market continued to show its strength as4 B" X4 l- Y1 z: h) J7 U, }& ^
house prices rose during the third quarter. The booming local economy resulted
. h3 t. l& q) r8 N& Fin a historically low unemployment rate, helping to bolster consumer1 Y/ a) U1 [8 ^2 T% }! g; R
confidence and Winnipeg's ranking as the city with the lowest capitalization. L% A/ r2 g- B
rate among the country's larger cities - helped to encourage buyers to enter5 s5 C. h# G. [" s2 g- u
the market.
3 ~1 l( C. V( f, k# c& {7 B0 P7 o; e t
In Regina, the market experienced a slight seasonal slowdown through8 K8 I( K& X+ o7 L& {2 C W
July, as there were fewer purchasers in the market due to summer vacations. In
! d. D0 s+ t! W/ RAugust, activity resumed to the busy pace previously seen in the spring$ ^" _4 K3 ~, M; ?) J# n6 A
months, as the influx of purchasers made it more difficult to find a home due. q% D6 l( @ d/ ^4 E$ {
to the shortage of available inventory.& A' A! C M& m3 l$ a7 J7 [
: g8 }1 j! ?% P0 o* n Activity in Saskatoon remained brisk as the market maintained its* L; P- m* p( D
momentum from the busy spring sales period. The economy in Saskatoon remains
) S4 {, o2 I4 h$ D3 `2 i avibrant, as employment opportunities are abundant with many businesses9 g' s4 _2 I: h: C+ W
struggling to make hires and having to recruit outside the province.
5 B; e1 J5 j( [# m0 ]* _
4 l# s+ |1 N) \8 e Calgary's housing market recorded blazing average house price increases
9 r! X- \+ {% P% \1 I Xin the third quarter, in all surveyed categories. The burgeoning economy, low9 i$ |- Y7 |! s. X4 j2 \& M& _
unemployment rates and low inventory levels remained the leading factors that
! c7 o a, R7 D6 y7 E% L7 \pressured Calgary's house prices upwards. However, regardless of the soaring
& T. R: k! R4 }7 s- wprices that characterized the market - even during the typically slower summer# s( d5 c \- ?; l: V
season - it is expected that activity will become slightly more balanced, as: ]4 s5 p. h% Z" B
buyers are becoming more reluctant to participate in the frenetic activity.
& n" U# I1 d; m9 K' ^0 r4 ]8 V/ D" b. R/ S( b5 u5 i
Edmonton's booming local economy continued to thrive in the third quarter
, z9 j4 X: v: \+ Uas activity in the oil sands north of the city continued to flourish. Edmonton
# C% }* ^+ y# J* @4 Xremained the hub of activity for those coming to work in the oil industry,3 E; D" e: M; @9 T' Y6 O! l
maintaining tight inventory levels across the city, resulting in prices% B# s$ t& g* e; h5 m8 g
increasing at record levels. However, as inventory levels continued to improve
X) h( K4 V) t$ Q+ p# ?; T4 hin the third quarter the rate of price appreciation should moderate slightly7 W/ E& e' i7 O- Y& n
towards the end of 2006. $ F# `4 q) c, A) d" \
" |+ d' y$ M" {6 b5 j* s: T
While Vancouver has seen a slight reprieve from the severe shortage of; R. m7 z! W9 D% Y" _
inventory that had previously characterized the market, supply is still unable. b- M+ G2 c, w( o! y+ ?/ s U( `7 F
to meet demand, driving house prices upwards. Vancouver has a very diverse7 c1 }$ z8 C) Z1 l. P
group of active buyers - from first-time home buyers to baby-boomers to5 I3 C* W+ f D( D
foreign investors - all of whom fuel the demand for houses, placing added
8 P- h( q3 i3 z& l Q) @9 upressure on tight inventory levels.& e4 t2 v3 w K# B; L2 m6 s' X3 G
' \$ ^$ g6 u- @; V: g) n Victoria's market is vibrant and supported by strong economic) _8 H2 w# i+ f, A
fundamentals, fuelled by a booming tech sector and a migration of young people6 Z1 m7 i1 `( \5 y) |1 K$ G% z
into the city that has continued to support the area's house price increases;0 N+ d; c& x, E
while increased inventory levels have afforded buyers more time when searching
: E7 P& ~4 c) w8 G# v) P0 qfor a home, helping to normalize the market's pace.
9 X* q( f. O9 h2 M# R9 ?
# C. o! }) u% P( G <<
8 {3 T8 G* E% m, } Survey of Canadian Average House Prices in the Third Quarter 2006! `: F7 o- k9 T) k
- N* y3 Y9 ]# E, b/ u/ x
-------------------------------------------------------------------------% H; w. R1 X: J0 ?5 f8 R! B5 B* D
Detached Bungalows Standard Two Storey
+ v$ o, e: M! p* E! d& ]' d1 ^0 s -------------------------------------------------------------------------: Y- a1 o2 C$ ?0 p
2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q36 N) f8 i& P" @& | i
Market Average Average % Change Average Average
$ Q& z/ {& ~) u; z% z -------------------------------------------------------------------------
" R4 f7 [; @; ] Halifax 186,333 173,333 7.5% 198,667 199,000
4 V( U% @* H' A( c" I6 b -------------------------------------------------------------------------- a. x1 l1 U- K) _* N; `0 m
Charlottetown 145,000 141,000 2.8% 175,000 170,0003 t0 `( c, G7 K) J1 ~2 y& b* l" F
-------------------------------------------------------------------------
. J( c0 u- a0 {. ` Moncton 135,000 127,000 6.3% 129,000 123,0002 F2 }% _, {, j- X/ G
-------------------------------------------------------------------------
" a* l- k* h8 E# r) F1 D0 ~( a" M4 D Saint John 141,200 142,900 -1.2% - -1 ?4 b9 [, f1 L+ r4 X! C
-------------------------------------------------------------------------8 m" H' c- B: L( r- h
St. John's 143,667 142,667 0.7% 200,667 202,333
. j. ` A: f; `0 ~* A* f8 p, a -------------------------------------------------------------------------% @6 v, n" Q* S( k9 R
Atlantic 150,240 145,380 3.3% 175,833 173,583; w8 @. P: ]- S" k$ k" e8 ?
-------------------------------------------------------------------------) {) i F; h! d( r1 Y
Montreal 213,691 203,500 5.0% 321,141 316,185' @9 Q/ O+ S# a j
-------------------------------------------------------------------------: J% R. ?$ d! |/ p
Ottawa 290,083 278,417 4.2% 285,667 273,250
& I4 L; X" Z) [) u* k1 s9 z a! | -------------------------------------------------------------------------
6 g5 M8 _8 Y+ I4 u0 f: d Toronto 373,368 355,882 4.9% 481,523 474,766 c1 _! n ~1 r4 O" t
-------------------------------------------------------------------------' V4 M1 B( T% t, {- h# A
Winnipeg 181,579 159,860 13.6% 202,337 180,707
/ O; X1 K0 [$ _1 O% E2 f2 D5 g -------------------------------------------------------------------------3 h+ P' G% m' q0 ^5 `/ _6 ?
Saskatchewan 170,667 156,083 9.3% 182,600 166,500
4 I5 g6 d% i2 b% _. ` -------------------------------------------------------------------------
2 y9 A! F% O0 W6 u Calgary 395,067 252,411 56.5% 405,778 264,389# x8 I: N& \2 _
-------------------------------------------------------------------------
9 A( {5 p* B" r! r5 O/ ~. C9 A Edmonton 286,857 194,857 47.2% 316,429 206,714
1 {. m1 `6 O' j$ R3 {9 N. Y4 q -------------------------------------------------------------------------
5 o9 \, n, S D7 \' l% n* d Vancouver 704,250 601,000 17.2% 794,000 697,500
L, C. a. ^; ]' } -------------------------------------------------------------------------4 N1 F3 O! i L' b5 @
Victoria 375,000 348,000 7.8% 403,000 391,000! |3 R# M* W- A) t4 o# p% U( p
-------------------------------------------------------------------------
; |$ e9 u9 F3 P v National 300,365 258,202 16.3% 365,380 322,860' F; q; I- V" \4 a8 }" U
-------------------------------------------------------------------------
8 c1 K. g% \3 T& A4 Q1 y: o9 p% P. u' `
-------------------------------------------------------------9 B6 h. S# m- C L) }$ p
Standard Condominium# n$ O7 [( @# u: l
-------------------------------------------------------------+ g: P8 O8 `. W
2-Storey 2006 Q3 2005 Q3 Condo
+ V$ H; N1 w& y- I% d Market % Change Average Average % Change
' j9 L; O& f; K/ T -------------------------------------------------------------' |- m) ~7 g! {1 ^- W
Halifax -0.2% 142,000 103,000 37.9%! L, ~& s5 w& f: R
-------------------------------------------------------------2 `0 }# x% |: D5 Y- e' r/ |
Charlottetown 2.9% 98,000 98,000 0.0%. ]# T) A- v. _- N" N' M9 y
-------------------------------------------------------------
' w" w% E Z+ i2 y( B+ w Moncton 4.9% - - N/A
M4 `' ]/ A- m; ^ -------------------------------------------------------------
9 R; [0 w/ X( G" X. t4 r6 u( f Saint John N/A - - N/A
1 w0 ^: t! l5 S7 H1 a -------------------------------------------------------------
3 U% W$ q, G$ y _2 T! M: f) J. G St. John's -0.8% 146,333 145,667 0.5%9 Z$ ~# p4 u4 D; H2 c
-------------------------------------------------------------
3 B; H- J: y. _( w; i Atlantic 1.3% 128,778 115,556 11.4%
4 v* [8 g' F, |3 c3 l* N/ p -------------------------------------------------------------! l; K0 j E3 {- a/ C% d7 H( Z2 Y
Montreal 1.6% 193,190 188,016 2.8%
9 K$ |' j3 M. u7 ^ -------------------------------------------------------------6 N3 G) m' m. N( ?7 z( P5 A
Ottawa 4.5% 181,083 172,250 5.1%
9 ]- p2 |3 {; @# S) D, f -------------------------------------------------------------* |2 g; B7 A& W3 n
Toronto 1.4% 252,088 242,918 3.8%! o, m" {- \( d' z
-------------------------------------------------------------
2 |( g$ n4 K) `% }# F- Y8 U) Q Winnipeg 12.0% 105,648 96,008 10.0%
, `9 @" |7 Y2 U& k; l -------------------------------------------------------------
: J+ s$ D# E; O: Q5 S Saskatchewan 9.7% 106,250 101,000 5.2%8 t& `7 `8 A; y; J5 n' p' Z3 p
-------------------------------------------------------------
2 j1 u6 |) J4 c2 m Calgary 53.5% 245,844 153,867 59.8%
2 {, t: d" p- B -------------------------------------------------------------; @6 ?- I4 ]" b, R6 z* F
Edmonton 53.1% 200,433 131,500 52.4%
9 ^* M7 [) D+ @2 j6 H -------------------------------------------------------------
/ o: E4 H( w$ y5 P Vancouver 13.8% 366,250 323,250 13.3%
/ D0 ]4 u# R3 Q* s( w -------------------------------------------------------------
3 F" P! C( D6 \2 `0 U8 B8 D! h$ o' W Victoria 3.1% 229,000 220,000 4.1%% s! C+ ]: G0 W' ^( I
-------------------------------------------------------------
% {5 H/ l* r, v: Q& x. A0 D National 13.2% 211,562 185,296 14.2%
* `* F! k: \3 S U' |; M! e4 O -------------------------------------------------------------8 o/ g* o/ P" j& \
>>
: G" i4 F, f# T5 D0 V1 Q- f, x b$ J9 ~6 G7 R3 H' x" i% R
Average house prices are based on an average of all sub-markets examined( | T' E* \8 ?0 v: x7 N2 n: ?+ }- j8 H5 Q
in the area, except for the smaller markets of Charlottetown, Moncton, Saint7 d$ r! k# F+ E/ C# W
John and Victoria.+ p" t* O' \4 m( g/ n% y
" r0 P9 Y* Z- i! P; ]: o8 D7 \
The Royal LePage Survey of Canadian House Prices is the largest, most( Q( W3 M- y9 X
comprehensive study of its kind in Canada, with information on seven types of
4 ?( ~5 y3 u" ^ t% T: ahousing in over 250 neighbourhoods from coast to coast. This release/ r9 q" n: R$ P# S0 Y
references an abbreviated version of the survey, which highlights house price
, e/ L0 v3 e& R- vtrends for the three most common types of housing in Canada in 80 communities8 x! \' Q0 y1 i$ h; N
across the country. A complete database of past and present surveys is0 P9 S% c) p4 Z/ g* N
available on the Royal LePage Web site at www.royallepage.ca, and current% |5 N6 G7 G- w+ ?* Z
figures will be updated following the end of the third quarter. A printable
* G3 @( @$ a7 S1 Eversion of the third quarter 2006 survey will be available online on: {4 B3 E% t* U, t
November 15, 2006.
+ _1 [" e# h7 E; |* E Housing values in the Royal LePage Survey are Royal LePage opinions of" Y. w$ `* @2 J5 M* t
fair market value in each location, based on local data and market knowledge
+ ~% D* s8 ]4 V& fprovided by Royal LePage residential real estate experts. Historical data is2 t" h4 X3 X1 A
available for some areas back to the early 1970s. |
|