Royal LePage says the Canadian real estate market is moderating in some areas, even as quarterly home prices increased once again.
Home prices remained unexpectedly resilient across Canada's housing market in the third quarter, the real estate company said in its latest house price survey and market forecast. Overall, the market benefited from low interest rates and a relatively stable domestic economy.
"A broader slowdown is expected in the months ahead but fears of a U.S.-style correction are completely unfounded," Royal Lepage president Phil Soper said.
The national average price of a detached bungalow rose the most, 7.8 per cent from the same time last year, to $349,974. Royal LePage uses year-over-year comparisons as the housing market follows a seasonal pattern. "It is important to note that our 2011 third-quarter results benefit greatly by going head-to-head with what was by far the previous year’s weakest period," Soper said.
The price of a standard two-storey home rose 7.7 per cent, to $388,218, and the price of a standard condominium 5.7 per cent to $239,300.
The report highlighted both Calgary and Edmonton as regions where prices were relatively flat year-over-year. Halifax and Saint John were singled out for having especially strong condo markets. In both, prices were up by 10.4 per cent over the past year.
