City beats suburbs in real estate values
John Morrissy, Canwest News Service
Better a city mouse or a country mouse to be? When it comes to the value of the house you live in, the city wins out, but only by a whisker.
While home prices in Canada’s major markets have nearly doubled no matter where a person lived, urban properties held the edge on their suburban counterparts, says Royal LePage.
The national average price of a standard two-storey home in an urban neighbourhood rose 129.2% to $522,999 over the past 10 years, the real estate services company said. The same property type in the suburbs grew in value by 110.1% to $334,380.
“A look back at the last 10 years in Canadian real estate growth reveals that typically, home prices in urban markets have grown faster than those in the suburbs, with both areas showing impressive appreciation,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services.
“Strong demand for amenities and limited supply in city centres have spiked prices upwards in urban areas, while affordability and spacious yards continue to attract buyers to the suburbs. It really comes down to a lifestyle choice.”
But the real estate market provided many exceptions to the rule, with house price appreciation varying from city to city and across different housing types, and with gains sometimes more marked in the suburbs than in urban areas, Mr. Soper said.
The greatest advances were in Edmonton, where condos in urban and suburban areas more than tripled and quadrupled in price, respectively.