Tag Archives: canadian real estate prices
Average home prices in July were lower than they were in June, but sales numbers and average prices are still up sharply compared to the same month a year ago, new data showed Tuesday.
The Canadian Real Estate Association said the national average price for homes sold in July 2011 stood at $361,181, which is the lowest level since January. In June, the average price was $372,700. Despite the slowdown, prices have nonetheless gained 9.3% in the past 12 months.
“Earlier this year, the national average price was being skewed upward by sales in some expensive Vancouver neighbourhoods, but this factor is now diminishing,” CREA’s chief economist Gregory Klump said. “Upward skewing of the national average price is also shrinking due to overall sales trends in Vancouver, and most recently in Toronto.”
The pullback was expected, as most economists have been forecasting for months that prices and sales will moderate somewhat through 2011 after an exceptional run following the recession that ended in 2009.
“Sales should ultimately find support from a continuation of exceptionally low borrowing costs,” Bank of Montreal economist Doug Porter said in a note Tuesday morning.
Sales activity, meanwhile, was flat on a monthly basis (up by less than 1%) but it came in 12.3% above national levels reported in July 2010. The large gain is a bit misleading because it came against an oddly low comparison point: Sales activity in July 2010 was the lowest it’s been since 2002.
2011 Forecast Raised
In a separate release Tuesday, CREA updated its forecast for the housing market as a whole. The agency now expects 450,800 homes to change hands across Canada this year, an increase of less than one% from their last forecast in May.
Sales are forecast to then slip to 447,700 units in 2012.
CREA also expects the average price of a sold home will be $363,500 through 2011 as a whole. That’s slightly higher than the July figure, but well below some of the monthly averages seen so far in 2011.
Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
By Lori Mcleod Globe and Mail
While home sale prices typically moderate in the fourth quarter, last year the average price of a detached bungalow increased by 11.6% to $337,555 from $302,497 the year before. The price of an average two-storey property rose 11.3% to $399,738, and a condo unit 11.7% to $240,395.
“The fourth quarter [of] 2007 was surprisingly strong, with unseasonably high price increases and unwavering demand,” said Phil Soper, president and chief executive officer of RLP, in a statement.
“As we move into the new year, activity levels are expected to wane from the frantic pace that many regions of the country experienced in 2007.”
While home sale prices typically moderate in the fourth quarter, last year the average price of a detached bungalow increased by 11.6% to $337,555 from $302,497 the year before.
Average prices are still expected to rise, but at a much more moderate pace, Mr. Soper added.
Much of the fourth quarter’s strength was due to natural resources, which drove growth in markets such as Regina and Saskatoon, the report said. The market with the biggest year-over-year home price gain in the quarter was Saskatoon, where the price of a bungalow rose by 55.2% to $292,500 and a two-storey home by 56.7% to $321,250. The highest priced homes in the country were in Vancouver, where the average two-storey house would set you back $895,000, compared with $803,500 the year before.
The only market to experience a price decline was the condo market in Fredericton, where the price of a unit fell by $500 to $126,000. Price growth was also notably slower in Calgary, where double digit gains appear to be a thing of the past. The price of a detached bungalow in Calgary rose 5.2% to $429,889, compared with $408,833 in 2006.