Brief, Mild Correction Forecast for Canada's Housing Market in First Half of 2013, According to Royal LePage

2012 closes with modest year-over-year national house price gains

TORONTO, January 8, 2013 – The Royal LePage House Price Survey and Market Survey Forecast released today showed the average price of a home in Canada increased year-over-year between 2.0 and 4.0 per cent in the fourth quarter of 2012. Compared to 2012, fewer homes are expected to trade hands in the first half of 2013, which should slow the pace at which home prices are rising. However, by the end of 2013, Royal LePage expects the average national home price to be 1.0 per cent higher compared to 2012.
While home sales volumes slowed in the second half of 2012, house prices, for the most part, held firm. Some consumers delayed their entry into the market during 2012, faced with economic uncertainty as governments in both the U.S. and Europe struggled with debt management plans and as homes in some regions became less affordable. In the fourth quarter, standard two-storey homes rose 4.0 per cent year-over-year to $390,444, while detached bungalows increased 3.6 per cent to $356,790. National average prices for standard condominiums increased 2.0 per cent to $239,374.
“More home buyers moved to the sidelines as 2012 progressed, as economic uncertainty abroad and reduced affordability became a drag on the market, however house prices proved resilient,” said Phil Soper, president and chief executive of Royal LePage. “Our sturdy domestic economy and encouraging employment trends have emboldened sellers, and some have opted to let market conditions adjust before listing. Simply put, fewer home owners listed their properties in the second half of the year, which kept inventory levels lower, and supported home values.”
Soper noted that in the absence of a serious economic event, many Canadians would adjust their short-term buying or selling timing according to prevailing market conditions, but that it was rare for engaged, qualified families to hold out for very long. Buyers are much more likely to make purchasing decisions based on trigger events such as marriages, growing families, salary or wage increases or the need to relocate for a new job. Royal LePage expects the trend towards slower sales volumes seen in the second half of 2012 to continue through the first half of 2013. Expectations are that year-over-year comparisons will begin to show improvement in the third quarter 2013, with sales volumes that are relatively flat versus 2012, and return to growth in the final quarter of the year.
“Canada is a realm of sizable, fairly independent regional economies. Some housing markets, such as those in Alberta and Saskatchewan, are poised to expand significantly in 2013. We will see a decline in unit sales and a flattening of home prices in our largest urban markets of Vancouver and Toronto and that will have a significant dampening effect on reported national averages,” said Soper.
Soper noted that the housing market is well into a cyclical correction and that fears of a sharp or drawn out collapse are unwarranted. Home prices have risen faster than salaries and wages for three years and the market requires time to adjust.
“A helpful comparison is to reflect on the beginning of 2009 when the country was in the grips of a very grim global recession,” he said. “It was a bleak time, with plunging consumer confidence driven by rapidly spreading unemployment. The meltdown of the American banking and finance sector had sent their housing market into a downward spiral and our own real estate market saw home sale transactions fall dramatically. Price appreciation in Canada ground to a halt, but home values dropped only slightly. With economic fundamentals such as employment levels improving, we expect this cyclical correction to be short-lived.”
While some first-time buyers have been sidelined by new federal mortgage insurance rules introduced in 2012, the cost of mortgage financing remains at historical lows and the desire to own property has not diminished. First-time buyers are adjusting to the new requirements by opting for cheaper homes or saving longer.
Soper concluded, “The silver lining in every real estate market correction is that there is a balance shift. After an extended period of frustrating bidding wars in key, supply-constrained regions, and spring-markets characterized by price increases that make financial planning difficult, Canadian home buyers will see momentum shift in their favour this spring. They should be met with more choice – and stable prices.”
Royal LePage expects that very modest home price appreciation will be the norm for the next two years, as North American economies gradually improve and family incomes climb slowly. Improving, but still tepid growth, in the United States should allow central banks in both countries to sustain the current low interest rate environment, which is very supportive of housing market activity.

Regional Market Summaries

In Halifax, low inventory led to healthy year-over-year price appreciation for all three housing types surveyed. Average price gains ranged from 3.5 to 7.3 per cent for the housing types surveyed. At the end of 2013, average house prices in Halifax are forecast to be 1.5 per cent higher than 2012.
Average home prices in Montreal were up year-over-year in the fourth quarter of 2012, as higher end units being sold to an active move-up buyer demographic skewed average prices upward, while first-time buyers adjusted to meet new mortgage regulations. At the end of 2013, average house prices in Montreal are forecast to be 3.8 per cent higher than 2012.
Good employment and affordability resulted in healthy year-over-year price appreciation in Ottawa with gains ranging from 3.0 to 4.6 per cent. At the end of 2013, average house prices in Ottawa are forecast to be 1.3 per cent higher than 2012.
Lack of inventory creating pent-up demand in Toronto produced strong year-over-year price appreciation in 2012. Detached bungalows posted an average increase of 4.9 per cent, while standard two-storey homes increased on average of 6.2 per cent. Standard condominiums posted a more modest average gain of 2.6 per cent. At the end of 2013, average house prices in Toronto are forecast to increase a more modest 1.0 per cent over 2012.
A healthy local economy and low interest rates produced strong year-over-year price appreciation in Winnipeg’s real estate market with average price gains ranging from 4.7 to 9.9 per cent. At the end of 2013, average house prices in Winnipeg are forecast to be 1.0 per cent higher than 2012.
For the second year in a row, two-storey homes in Regina posted the largest average price increases across all housing types surveyed in Canada rising 16.8 per cent. Detached bungalows and standard two-storey homes also posted gains rising 5.3 and 5.9 per cent. At the end of 2013, average house prices in Regina are forecast to be 4.0 per cent higher than 2012.
Increased demand and low inventory resulted in healthy year-over-year price gains for standard two-storey homes and detached bungalows in Calgary and Edmonton, while price appreciation for standard condominiums were relatively flat in both cities compared to the fourth quarter of 2011. At the end of 2013, average house prices in Calgary are forecast to increase 2.5 per cent, while Edmonton house prices are expected to increase by 0.6 per cent compared to 2012.
Low market activity resulted in modest price declines across all three housing types in Vancouver ranging from 1.3 to 3.6 per cent. At the end of 2013, average house prices in Vancouver are forecast to further decline 3.0 per cent compared to 2012.
Royal LePage’s quarterly House Price Survey shows the annual change of prices for key housing segments in select national markets.
Click here to view the chart 
Click here to download the release (.pdf) 

About the Royal LePage House Price Survey

The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey which highlights house price trends for the three most common types of housing in Canada in 90 communities across the country. A complete database of past and present surveys is available on the Royal LePage web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the fourth quarter of 2012. A printable version of the fourth quarter 2012 survey will be available online on February 6, 2013.
Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.
Royal LePage 2013 Market Survey Forecast 
Royal LePage Q4 2012 House Price Survey - Data Chart  

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of 14,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's & children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.
For more information, visit www.royallepage.ca.

Royal LePage prévoit que le marché immobilier subira une légère et brève correction au cours du premier semestre de 2013

Par rapport à l’an dernier, l’année 2012 s’est terminée avec une légère hausse du prix des maisons à l’échelle nationale

TORONTO, le 8 janvier 2013 – L’Étude sur le prix des maisons et les prévisions du marché de Royal LePage diffusées aujourd’hui indiquent qu’au quatrième trimestre de 2012, le prix moyen des propriétés au Canada a connu une variation annuelle à la hausse entre 2,0 et 4,0 pour cent. Comparativement à l’année 2012, on s’attend à un nombre moins élevé de ventes de maisons au cours du premier semestre de 2013, ce qui devrait ralentir la hausse du prix des maisons. D’ici la fin de 2013, Royal LePage s’attend à ce que les prix moyens nationaux se majorent de 1,0 pour cent comparativement à ceux de 2012.
Bien qu’il y ait eu un ralentissement du volume des ventes au cours du deuxième semestre de 2012, le prix des maisons s’est maintenu en grande partie. Au cours de l’année 2012, certains consommateurs ont retardé leur entrée sur le marché en raison d’un climat économique incertain, attribuable aux luttes que livrent les gouvernements américain et européen sur le plan de la gestion de la dette, et au fait que les propriétés sont devenues moins abordables dans certaines régions. Au quatrième trimestre, le prix des maisons standards à deux étages a grimpé de 4,0 pour cent par rapport à l’année dernière, atteignant 390 444 $, tandis que le prix des maisons individuelles de plain-pied a connu une hausse de 3,6 pour cent pour s’établir à 356 790 $. Au pays, le prix moyen des appartements en copropriété standards a augmenté de 2,0 pour cent, pour atteindre 239 374 $.
« Un plus grand nombre d’acheteurs de propriétés ont été mis à l’écart au fil de l’année 2012 en raison du climat d’incertitude économique qui règne à l’étranger et d’un marché moins accessible, même si les prix des propriétés se sont maintenus, » affirme Phil Soper, président et chef de la direction de Royal LePage. « Notre vigoureuse économie nationale et les tendances encourageantes en matière d’emploi ont stimulé les vendeurs; certains ont décidé d’attendre que les conditions du marché se stabilisent avant de mettre leur propriété sur le marché. En d’autres mots, moins de propriétaires ont mis leur maison sur le marché au cours du deuxième semestre, ce qui a réduit le nombre de propriétés à vendre et permis aux propriétés de conserver leur valeur. »
M. Soper a remarqué qu’en l’absence d’événements économiques importants, nombre de Canadiens reportent leur décision d’achat ou de vente à court terme en fonction des conditions du marché, bien qu’il soit rare pour les familles qui désirent acheter ou vendre une propriété de pouvoir attendre très longtemps. Les acheteurs sont beaucoup plus susceptibles de prendre des décisions lors d’événements importants comme un mariage, une famille qui s’agrandit, une hausse salariale ou un déménagement pour un nouveau travail. Royal LePage s’attend à ce que la tendance au ralentissement des ventes qui s’est manifestée au cours du deuxième semestre de 2012 persiste au cours du premier semestre de 2013. On estime qu’en comparant les ventes des douze derniers mois, une amélioration devrait se manifester au cours du troisième trimestre de 2013 au chapitre des volumes de ventes qui sont relativement stables par rapport à 2012, de même qu’une reprise de croissance au dernier trimestre de l’année.
« Le Canada est un regroupement d’économies régionales indépendantes assez importantes. Certains marchés immobiliers, comme ceux de l’Alberta et de la Saskatchewan, s’apprêtent à prendre une expansion substantielle en 2013. Par ailleurs, nous constaterons un déclin des ventes unitaires et une stabilisation des prix dans nos plus importants marchés urbains de Vancouver et Toronto, ce qui aura pour effet de réduire considérablement les moyennes nationales, » déclare M. Soper.
M. Soper constate que la correction cyclique du marché immobilier est bien entamée et que les craintes à l’égard d’un effondrement brutal ou prolongé sont injustifiées. Pendant trois ans, le prix des maisons a augmenté plus rapidement que les salaires et le marché a besoin de temps pour se rajuster.
« À titre de comparaison utile, repensons au début de l’année 2009, au moment où le pays était aux prises avec une sinistre récession mondiale, ajoute-t-il. C’était une période sombre où le taux de chômage élevé avait fait sombrer la confiance des consommateurs. Aux États-Unis, l’effondrement du secteur bancaire et de la finance a entraîné le marché immobilier dans une spirale descendante, tandis qu’au pays, nous connaissions une chute dramatique de nos transactions immobilières. Au Canada, la hausse des prix s’est interrompue, mais la valeur des maisons a chuté légèrement. En tenant compte de facteurs économiques fondamentaux comme l’amélioration des niveaux d’emploi, nous estimons que cette correction cyclique sera de courte durée. »
Bien que certains acheteurs d’une première maison aient dû réviser leurs plans à la suite de l’entrée en vigueur des nouvelles règles hypothécaires annoncées par le gouvernement fédéral en 2012, le coût du financement hypothécaire demeure historiquement bas et le désir de devenir propriétaire d’une maison est toujours aussi fort. Les acheteurs d’une première maison s’adaptent aux nouvelles exigences en optant pour des propriétés moins chères ou en épargnant plus longtemps.
M. Soper de conclure : « L’aspect positif de toute correction du marché immobilier est qu’elle crée un équilibre. Après une longue période de surenchères contrariantes dans les principales régions où l’offre est limitée, et des marchés printaniers caractérisés par des hausses de prix qui nuisent à la planification financière, le marché tournera à l’avantage des acheteurs canadiens au printemps. Ils auront plus de choix et les prix seront stables. »
Comme les conditions économiques s’améliorent graduellement en Amérique du Nord et que le revenu des familles grimpe lentement, Royal LePage s’attend à ce que, de façon générale, la hausse du prix des maisons soit très modeste au cours des deux prochaines années. Une timide amélioration de la croissance aux États-Unis devrait permettre aux banques centrales des deux pays de maintenir le faible taux d’intérêt actuel qui favorise largement les activités immobilières.

Résumés des marchés régionaux

À Halifax, le faible nombre de propriétés à vendre s'est traduit par une saine appréciation annuelle des prix pour les trois types de propriétés à l'étude. En moyenne, l'augmentation des prix a varié de 3,5 à 7,3 pour cent pour les types de propriétés étudiés. On prévoit qu'à la fin de l'année 2013, le prix moyen des habitations à Halifax sera 1,5 pour cent plus élevé qu'il ne l'était en 2012.
Le prix moyen des maisons à Montréal a enregistré une hausse au quatrième trimestre de 2012 comparativement à l'an dernier, alors que la vente d'unités à prix plus élevé sur le marché actif des acheteurs de deuxième (ou troisième) maison a influencé les prix moyens à la hausse et tandis que les acheteurs d’une première maison se sont ajustés aux nouvelles règles hypothécaires. On prévoit qu'à la fin de 2013, le prix moyen des habitations à Montréal sera 3,8 pour cent plus élevé qu'il ne l'était en 2012.
À Ottawa, le bon taux d'emploi et l'accessibilité ont entraîné une saine appréciation des prix variant de 3,0 à 4,6 pour cent. Le prix moyen des habitations à Ottawa à la fin de l'année 2013 devrait être 1,3 pour cent plus élevé qu'en 2012.
En 2012, le faible nombre de propriétés à vendre à Toronto a créé une demande insatisfaite, ce qui a causé une bonne croissance des prix par rapport à la même période l’année dernière. Les maisons individuelles de plain-pied se sont appréciées de 4,9 pour cent et les maisons standards à deux étages, de 6,2 pour cent en moyenne. Le prix des appartements en copropriété standards a connu une légère hausse de 2,6 pour cent en moyenne. On prévoit qu'à la fin de 2013, le prix moyen des habitations à Toronto augmentera d'un taux modeste de 1,0 pour cent par rapport à 2012.
L'économie locale se portant bien et les faibles taux d'intérêt ont engendré une saine augmentation annuelle des prix de l'immobilier à Winnipeg, les prix ayant enregistré en moyenne une hausse de 4,7 à 9,9 pour cent. On prévoit qu'à la fin de l'année 2013, le prix moyen des habitations à Winnipeg sera 1,0 pour cent plus élevé qu'il ne l'était en 2012.
Pour la deuxième année consécutive, les maisons à deux étages à Regina ont connu la plus importante augmentation de prix moyens de tous les types de propriétés recensés au Canada, affichant une hausse de 16,8 pour cent. Le prix des maisons individuelles de plain-pied et le prix des maisons standards à deux étages ont connu une hausse de 5,3 et de 5,9 pour cent. On prévoit qu'à la fin de l'année 2013, le prix moyen des habitations à Regina sera 4,0 pour cent plus élevé qu'il ne l'était en 2012.
L'augmentation de la demande et le nombre peu élevé de maisons à vendre a entraîné des hausses de prix appréciables par rapport à l’an dernier pour les maisons standards à deux étages et les maisons individuelles de plain-pied à Calgary et à Edmonton, tandis que l'augmentation des prix pour les appartements en copropriété standards sont demeurés relativement stables dans les deux villes comparativement au quatrième trimestre de 2011. On prévoit qu'à la fin de l'année 2013, le prix moyen des habitations à Calgary grimpera de 2,5 pour cent, alors qu'on s'attend à une hausse de 0,6 pour cent à Edmonton, comparativement à 2012.
La faible activité sur le marché s'est traduite par de modestes baisses des prix pour les trois types de propriétés à Vancouver allant de 1,3 à 3,6 pour cent. On s'attend à ce que le prix moyen des habitations à Vancouver continue de diminuer de 3,0 pour cent à la fin de 2013 comparativement à ce qu'il était en 2012. 
Cliquez ici pour télécharger la table 
Cliquez ici pour télécharger le communiqué (format .PDF) 

À propos de l’Étude sur le prix des maisons de Royal LePage

L'Étude sur le prix des maisons de Royal LePage est l'analyse immobilière la plus vaste et la plus exhaustive de ce genre au pays. Elle fournit de l'information sur sept types d'habitations répartis dans plus de 250 villes et quartiers d'un océan à l'autre. Le présent communiqué renvoie quant à lui à une version abrégée de l'Étude mettant en lumière l'évolution des prix des trois types d'habitations les plus courants dans 90 communautés à l’échelle du pays. Il est possible de consulter une base de données complète contenant les données recueillies au cours des sondages en visitant le site Web de Royal LePage à l’adresse www.royallepage.ca. Les données actuelles seront mises à jour dès la fin du quatrième trimestre de 2012. Une version imprimable du rapport du quatrième trimestre de 2012 sera disponible en ligne le 6 février 2013.
Les valeurs des propriétés indiquées dans l'Étude sur les prix des maisons de Royal LePage correspondent à l'évaluation de Royal LePage de la valeur marchande des propriétés de chaque endroit en fonction des données locales et des renseignements sur le marché fournis par les experts du secteur immobilier résidentiel de Royal LePage.
Étude sur les prévisions du marché Royal LePage 2013 
Étude sur le prix des maisons Royal LePage du 4ième trimestre 2013 : tableau 

À propos de Royal LePage

Au service des Canadiens depuis 1913, Royal LePage est le premier fournisseur au pays de services aux maisons de courtage immobilier, grâce à son réseau de plus de 14 000 professionnels de l'immobilier répartis dans 600 bureaux partout au Canada. Royal LePage est la seule entreprise immobilière au Canada à posséder son propre organisme de bienfaisance, la Fondation Un toit pour tous de Royal LePage, qui vient en aide aux centres d'hébergement pour femmes et enfants ainsi qu'aux programmes éducatifs visant à mettre fin à la violence familiale. Royal LePage est une société affiliée de Brookfield Real Estate Services Inc., entreprise inscrite à la Bourse de Toronto sous le symbole « TSX:BRE ».
Pour en savoir davantage, veuillez visiter le site www.royallepage.ca.

Bonne Anneé and Happy New Year!

HAPPY NEW YEAR

YOUR DAILY SURVIVAL KIT FOR THE NEW YEAR

Today, I am giving you a Daily Survival Kit to help you each day............

Toothpick ... to remind you to pick the good qualities in everyone, including yourself.
Rubber band ... to remind you to be flexible. Things might not always go the way you want, but it can be worked out.
Band-Aid ... to remind you to heal hurt feelings, either yours or someone else's.
Eraser ... to remind you everyone makes mistakes. That's okay, we learn by our errors.
Candy Kiss ... to remind you everyone needs a hug or a compliment everyday.
Mint ... to remind you that you are worth a mint to your family & Me.
Bubble Gum ... to remind you to stick with it and you can accomplish anything.
Pencil ... to remind you to list your blessings every day.
Tea Bag ... to remind you to take time to relax daily and go over that list of blessings.
 
Wishing you love, gratitude, friends to cherish,caring, sharing, laughter, music, and warm feelings in your heart in 2013.

Bonne Année et Bonne Santé!

Happy New Year!
Wishing you all - good health, peace and happiness in 2013!

Paul and Diane Laflamme

Royal LePage Village

450.458.5365

 
 

Joyeux Noël et Bonne Année!
Merry Christmas and Happy New Year!

Paul and I wish our family, friends and clients all the joys of the season. May you be blessed with good health, peace and love. Thank you also for supporting our real estate business. We appreciate your loyalty and support. 

Happy Holidays from our home to your home!
Joyeuses Fêtes de chez nous à chez vous!
Diane and Paul Laflamme

2494 Deer Run, Saint-Lazare. - Vendu!

2494 Deer Run, Saint-Lazare

Cette maison familiale idéale est située sur un croissant tranquille au coeur de Saddlebrook. Beaux jardins et propriété privée. Maison très bien entrenue avec salle familiale au rez-de-chaussée ouverte à la cuisine et coin-repas. Solarium très ensoleillé avec accès sur la terrasse arrière qui mène au gazebo avec spa. 

This ideal family home is located on a quiet crescent in the heart of Saddlebrook. The grounds are lovely and the property is private. This well maintained home has a main floor family room which opens on to the kitchen and dinette. The solarium is full of sunshine and you can access the back deck which leads to the gazebo with hot tub. Many updates.

 

Bullying.....has to stop.

The students at Westwood Senior High School in Hudson, Quebec, Canada created this video as part of their anti-bullying campaign. The song was sung by artist Patrick Watson who was raised in Hudson, Quebec.

Well done....

Every child, teenager AND adult should watch this.


 





http://www.youtube.com/watch?v=AP15bzcPg9M&feature=share

CRTC approves licence for radio station serving Hudson, St-Lazare

The English-speaking community in the off-island area is going to get its first local radio station within the next year.

On Friday, the Canadian Radio-television and Telecommunications Commission approved an application from Dufferin Communications to launch a commercial radio station serving Hudson/St. Lazare at 106.7 FM. The station’s signal, from a 500-watt transmitter on a tower on Harwood Blvd. in St-Lazare, would also reach into Vaudreuil, Oka and parts of the West Island.
“We’re really, really excited,” Dufferin, vice-president Carmela Laurignano, told The Gazette.
The company first applied for the licence in February 2010 and has been patiently waiting for a hearing and a decision. In the meantime, the Toronto-based company also won a licence for a French-language AM radio station in Montreal serving the gay community.

Programming on the new Hudson/St. Lazare station, whose brand name has not yet been decided, would be similar to The Jewel, Dufferin’s network of stations with easy-listening music from artists like Céline Dion, Michael Bublé and Tony Bennett, though Laurignano said they would try to make the programming here as broad-based as possible since it will be the only station in its market. She also said it would have much more news and information than other Dufferin stations. The application calls for four hours and 22 minutes a week of news, of which half would be local to Hudson/St. Lazare, including a calendar of local events.

Laurignano said the company hopes to have the station on the air by next fall, and looks to hire between 15 and 20 people in various positions.

“It’s our intention to hire locally,” she said, adding that they have been bombarded by job queries since the application for the station was published by the CRTC in February.
The application got the support of the Town of Hudson, which passed a unanimous resolution at a town council meeting in February. But it was opposed by other radio stations concerned about competition in the Montreal market.

“The area is very much one that stands on its own (and is) separate from the Montreal area,” Laurignano told The Gazette in February.

As part of its application, Dufferin commissioned a survey that showed most people in the two towns don’t identify themselves as Montrealers and feel existing radio stations don’t adequately cover news from that community.

By next fall, that should change a great deal.
To read the CRTC decision, click here:
sfaguy@montrealgazette.com

Vendu - 2560 Julien, Saint-Lazare

2560 Julien, Saint-Lazare is sold!
This beautiful home was listed at $369,000
Vendor and Buyers are very happy!

2560 Julien, Saint-Lazare

Vendu!

Paul & Diane Laflamme

Courtiers immobilier

Royal LePage Village

450.458.5365

93 Pyke Court, Hudson is sold!

Vendu!

83 Pyke Court, Hudson

Listed and sold by Royal LePage Village Hudson 
Sold in 14 days!

Asking price was $979,000

Paul and Diane Laflamme

Royal LePage Village

450.458.5365 

Canadian House Prices Edge Up in Third Quarter While the Number of Home Sales Fall

Canadian House Prices Edge Up in Third Quarter While the Number of Home Sales Fall

First-time buyer activity drops as market adjusts to new mortgage regulations

TORONTO, October 3, 2012 – The Royal LePage House Price Survey released today showed the average price of a home in Canada increased year-over-year between 1.8 and 4.8 per cent in the third quarter of 2012.
Survey findings indicated that the average standard two-storey home in Canada increased 4 per cent year-over-year rising to $403,747, while detached bungalows rose 4.8 per cent to $366,773. Standard condominiums witnessed an increase of 1.8 per cent to $243,607. Most cities in Canada experienced modest price appreciation in the quarter, but fewer homes were sold compared to the same period in 2011.
“A drop in the number of homes trading hands typically precedes a period of softening house prices. Where there is reduced demand, those who want to sell their homes adjust their asking price to stimulate interest. During the third quarter, unit home sales were positive in July, fell 9 per cent year-over-year in August and we are expecting September to show a decline as well,” said Phil Soper, president and chief executive, Royal LePage. “We had predicted this cyclical change early in the year, a natural market reaction after a period of strong expansion. Changes to mortgage regulations, which took effect on July 9th, accelerated the correction.”
In July, the Minister of Finance announced that the maximum amortization period for insured mortgages would be reduced to 25 years from 30 years. This was the fourth intervention in the mortgage market in just four years and the most impactful. Potential first-time buyers, which in a typical market represent one third to one half of all purchase transactions, felt the changes immediately.
“While hard-hit in the short-term, first-time buyers will adjust to tougher mortgage qualifications. The dream of homeownership is very much alive among young Canadians. They may remain renters for sometime as they save; some will opt for less desirable neighbourhoods and some will purchase smaller homes,” added Soper. “In the meanwhile, we will feel their absence in national sales statistics.”
Canadian consumers were bombarded with troublesome economic news from around the globe during the period, particularly in the early weeks of the third quarter. While this has been a drag on the nation’s housing market and contributed to a slowing in home sale transactions, consumer confidence appeared to rebound in September, which should support activity in the important fall market.
“Policy makers in Canada and the United States have confirmed that the current period of very low interest rates will continue, likely through 2013. This is very supportive of housing market activity and any downward pressure on home prices should be minimal,” said Soper. “And for the first time in six years, sustained positive news from the American housing market should leave Canadian’s more confident about our continued economic prosperity.”
National average house price changes do not always reflect the markets of individual cities, which are closely tied to their local economies. Case in point, some $29 billion in energy related investments are now underway in Alberta and Calgary is expected to lead the nation in economic growth through 2013. The city posted healthy price appreciation for both detached bungalows and two-storey homes, as predicted in previous Royal LePage House Price Surveys and Market Survey Forecasts.
“When the underlying economy of a city is sound and growing, house price appreciation is sustained. Calgary has enjoyed solid growth in home values this year. I have also been very pleased with the growth in commercial brokerage transactions seen in our Royal LePage Commercial business in the region,” said Soper.

Regional Market Summaries
Halifax’s strong employment levels led to average price increases across all three housing types surveyed. Detached bungalows continued to witness the largest year-over-year gains, increasing 8.9 per cent to $293,000. Detached bungalows in St. John’s witnessed the largest average price gains across Canada, rising 9.9 per cent, as mega-projects continue to boost migration.  
Despite a decline in market activity, Montreal’s house prices posted healthy increases in the second quarter of 2012. Standard two-storey homes witnessed the largest average price increase, rising 5.5 per cent to $387,786.
Healthy employment in Ottawa’s technology sector balanced job loss in the government sector as the region posted healthy average price increases across all three housing types surveyed, with house price gains ranging from 4.9 to 6.1 per cent.
Average house price gains in Toronto ranged from 2.7 to 5.9 per cent for housing types surveyed. Although demand decreased modestly due to mortgage rule changes, the pipeline of potential buyers continued to put upward pressure on detached bungalows and standard two-storey homes. Multiple offers are still very common in the region.
Winnipeg’s real estate market produced average price gains ranging from 6.5 to 8.3 per cent as first-time buyers remained fairly active, despite recent changes to mortgage rules.
Low inventory coupled with demand created by low interest rates continued to put upward pressure on average year-over-year price gains in Regina. Standard-two storey homes posted the largest increase of 9.8 per cent rising to an average price of $359,500.
Calgary’s healthy market activity and increased consumer confidence has led to house price gains in the third quarter for detached bungalows and standard two-storey homes, increasing 6.5 per cent and 4.1 per cent respectively. Detached bungalows in Edmonton posted strong price gains rising an average of 7.5 per cent in the third quarter, while two-storey homes increased a modest 1.5 per cent and standard condominiums declined 0.6 per cent.
In Vancouver, average house prices posted modest decreases as market activity slowed down during the third quarter. Standard condominiums posted the largest decrease, slipping 3.0 per cent year-over-year to $498,000.
Royal LePage’s quarterly House Price Survey shows the annual change of prices for key housing segments in select national markets.  Click here to download the chart

About the Royal LePage House Price Survey

The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast.  This release references an abbreviated version of the survey which highlights house price trends for the three most common types of housing in Canada in 90 communities across the country.  A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the third quarter 2012. A printable version of the third quarter 2012 survey will be available online on November 2 2012.
Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.
Royal LePage Q3 2012 House Price Survey - Data Chart

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of 14,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's & children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.
For more information visit www.royallepage.ca.

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