According to Royal LePage’s most recent House Price Survey for the first quarter of 2013, the average price of homes in Canada grew by between 1.2 per cent and 2.4 per cent over the same time period last year. The average price of a two-storey home rose by 2.2 per cent over 2012.
“2013 finds the Canadian housing industry in a highly unusual place,” said the president and chief executive of Royal LePage, Phil Soper. “The combination of very low mortgage rates and flat home prices, against a background of general economic improvement across the nation, is not something we’ve seen before. Typically one of these variables is moving hard in an opposite direction. While some have spoken loudly about impending market volatility and dramatic downward pressure on home prices, we are simply not seeing evidence of this. The current environment is very supportive for housing. Those waiting for big declines in home prices will likely be disappointed.”
The Canadian economy was relatively stable during the first quarter of this year, while the economy in the United States improved as well.
“There is some degree of uncertainty regarding the length of time these factors will remain in place,” continued Soper. “Of the three variables we identified, economic strength is the most likely to persist based upon the upswing in employment, our well-educated workforce, a solid financial sector and the influence of our natural resource sector. Given recent and repeated signals from the Bank of Canada, we can expect interest rates to remain low for some time to come. The continue stability of house prices is much harder to gauge.
The full price survey is available here: http://www-c.royallepage.ca/news/canadas-housing-market-begins-the-year-with-slightly-positive-price-trends/
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