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Average House Prices Remain High
Friday, January 07, 2005
TORONTO, Jan. 7 /CNW/ - The end of the year traditionally signals a slowdown of housing market activity, however the major markets demonstrated surprising strength in the fourth quarter, as average prices rose, year-over-year, according to a report released today by Royal LePage Real Estate Services.
The highest average price appreciation occurred in standard condominiums, which rose to $172,185 (+7.3%), followed by a standard two-storey home which increased to $302,107 (+6.3%), and a detached bungalow which rose to $251,238 (+5.8%).
Of the national markets examined, 88 per cent of those with detached bungalows increased in value, 86 per cent with standard two-storeys increased in price and 80 per cent with standard condominiums increased, year-over-year.
The trend in 2004 was toward a stabilization of average price gains, however some of the major markets experienced stronger levels of appreciation in fourth quarter, year-over-year, including Calgary and Edmonton. While the quarter began slowly, activity rebounded in November and tapered off in late December due to a typical seasonal slowdown.
"As 2004 drew to a close, the Canadian housing market was clearly more balanced than it was in the first half of the year," said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services. "Although inventory levels have increased across the country, the incredible momentum which has gathered in the market over the past several years continued to maintain record-breaking average prices in many cities."
Added Soper: "Moving into 2005, this momentum is expected to slow and the market will deliver more sustainable price gains that are typical of a balanced housing market."
Vancouver, Victoria and Winnipeg experienced the highest price increases respectively in the fourth quarter, with double-digit appreciation seen across all three housing categories in these cities. Most markets remained in the seller's favour, however buyers experienced more equal conditions toward the end of 2004 which are expected to continue into 2005.