Rebalanced Canadian Economy According to Royal LePage
Rebalanced Canadian economy supports healthy real estate markets across the country
In the third quarter of 2015, home prices showed moderate to strong year-over-year increases in most markets in Canada, according to the Royal LePage House Price Survey released in October. While the effects of the crude oil shock are still filtering through the economy, the country’s non-energy sectors are beginning to regain momentum as a lower Canadian dollar stimulates sharply higher exports, particularly to the U.S., supporting overall consumer confidence and the strength of Canada’s real estate markets.
According to the report and the Royal LePage National House Price Composite, a weighted median of house values in 53 of the nation’s largest real estate markets, the price of a home in Canada increased 8.0 per cent year-over-year to $502,643 in the third quarter. The price of a two-storey home rose 9.9 percent year-over-year to $615,304, and the price of a bungalow increased 6.8 per cent to $421,757. During the same period, the price of a condominium increased 2.7 per cent to $338,945.
“Economic slowdowns in energy-dependent markets, most notably in western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Phil Soper, chief executive officer, Royal LePage. “In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families.”
The Greater Montreal Area saw moderate increases in the third quarter of 2015, with the aggregate price of a home increasing 2.2 per cent year-over-year to $337,060. Central Montreal by comparison saw healthier price appreciation with a 4.2 per cent aggregate home price increase to $411,513 in the same period.
Calgary and Edmonton’s housing markets continue to hold firm, maintaining stability amid continued economic uncertainty. Regina and St. John’s home price increases are now firmly below the national average, but are remaining stable. Atlantic Canada showed mixed results, with a clear exception in Halifax, which showed healthy year-over-year price increases in most housing categories surveyed.
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