Toronto house prices rise in first quarter
By Garry Marr - Financial Post
TORONTO — Home prices for the first three months of this year rose almost 12% from a year ago in a clear sign that the real estate market still has legs, says one of the country’ leading real estate companies.
The price of a standard two-story house in Canada was up to $378,148 at the end of March, a jump from $338,228. Bungalow price rose even faster, jumping 14.9% from a year ago to an average price of $316,993. Condos rose 16.3% from a year ago to an average of $230,146.
“The strength of last year’s real estate market has carried into the first quarter of 2007, creating a robust market, chock-full of activity with house prices rising in all major cities,” said Phil Soper. “The recent months have produced record-breaking real estate sales levels in many markets and unwavering demand - momentum which will undoubtedly be maintained through the always busy spring market.”
LePage said low interest rates — you can still lock into a five-year mortgage at just above 5% — and strong consumer demand are driving the real estate market. Strong consumer confidence and healthy provincial economies boost demand, report says.
Another factor making the national numbers look impressive is the strong results from Western Canada. Alberta’s booming economy continues to be a driver for the entire country.
In Edmonton, prices rose more than 50% from a year ago in the two-storey and bungalow categories. Condos were even hotter in Alberta capital with a standard apartment now fetching $261,600, a 72.1% increase from a year ago.
The gains in Calgary seem tame by comparison. A standard two-storey home in Calgary is now $411,456, a 27.4% jump from a year ago. Condos in Calgary are up 38.9% from a year ago.
The Alberta boom appears to have had a ripple effect on Saskatchewan, driving two-story home prices up 36.2% in Saskatoon. However, you can still get a standard two-story home in the city for $189,000.
“Former residents have returned from cities like Calgary, escaping skyrocketing real estate prices and the rapidly rising cost of living,” said LePage, in explaining the surprising Saskatchewan statistics.
Vancouver continues to be the most expensive place to buy a home. A standard two-storey house in Vancouver is $837,500, a 10.5% increase. Those type of prices have driven the city’s booming condo market but even a standard condo costs $403,500 in Vancouver, a 14.3% increase from a year ago.
Prices in the east continue to rise above inflation and LePage expects a lot of activity in Toronto because of the stable pricing environment. A standard two-story home in the country’s largest city is $489,889 but that’s only a 4.7% increase from year ago.
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