Urban home prices continue to rise

Home prices in major Canadian cities continued rising strongly through the summer, Royal LePage Real Estate Services reported today. The company’s third-quarter survey of the resale housing market found that on a national basis the average condominium price increased 15.7 per cent from a year earlier to $241,818, while standard two-storey properties gained 13.4 per cent to $407,613 and bungalow prices were up 14.3 per cent to $340,941.

“Much like the Canadian dollar, the Canadian housing market is charting its own course, quite independent from the United States and its currency and housing climate,” declared Phil Soper, chief executive of the national realty operator.

“The strength of the Canadian dollar, and the fact that the country is adjusting well to its value, will continue to keep interest rates at their existing low-to-moderate levels, boding well for buyers looking to enter the market.”

Saskatoon had the most dramatic year-over-year price appreciation - over 60 per cent - while a typical two-storey house appreciated 55 per cent in Saint John, N.B., 27 per cent in Fredericton, 26 per cent in Edmonton, 17.5 per cent in Calgary, 17 per cent in Regina, 15 per cent in Winnipeg and 11 per cent in Vancouver.

The Royal LePage survey of 250 neighbourhoods in 16 cities found that the Alberta market is easing from its recent intense activity, while “Central and Eastern Canada are now rising alongside their western counterparts as their local commodity industries receive increased attention.”

It also noted increasing home ownership in Montreal, traditionally a city of renters.

Toronto’s housing market “continued to set records throughout the summer,” with a typical two-storey house rising nine per cent to $523,320. The country’s biggest city “is poised for continued activity and rising average house prices as the city continues to attract both buyers relocating to the city centre from the suburbs, and newcomers to the country.”

In Atlantic Canada, “the past few months have seen both Saint John (N.B.) and St. John’s (N.L.) become the ‘Calgarys’ of the East, as several energy-related projects in New Brunswick and Newfoundland gain attention,” Royal LePage reported. “While Halifax is not directly related to the oil industry, the city is experiencing a spill-over effect.”