As stated by the Royal LePage in their House Price Survey that was released this week, in the fourth quarter of 2017 Canada’s residential real estate market witnessed a strong but slowing year over year price growth.
However, year over year aggregate appreciation was still high in Greater Vancouver and the Greater Toronto Area. In the Greater Toronto Area two storey and bungalow values dropped. Also, in both Greater Vancouver and the Greater Toronto area, the prices of condos continued to overshadow all other property types, mainly because of increasing affordability limitation within these markets.
The survey by the real estate firm consists of data of 53 of the country’s biggest real estate markets. Prices of homes in Canada rose by 10.8 per cent or $626,042 year over year in quarter.
The Royal LePage also noted that the average price of a two storey home went up by 11.1 per cent year over year to $741,924 and for that of a bungalow it rose 7.1 per cent to 522,963.
In the report, the company says that the average price of a condo increased way faster than any other property type involved in the survey. It went up by 14.3 per cent to $420,823 on a year over year basis.
In the Greater Toronto Area, the average price of a condo rose by 19.5 per cent year over year to up to $476,421 and as for the city of Toronto, there too saw almost the same gain but with a difference of 0.1 per cent. The city’s average condo price increased by 19.6 per cent year over year to $515,578.
As for Greater Vancouver, condos were still on the rise with an increase of 20.2 per cent to $651,885 and the average price of a condo increasing by 18.7 per cent to $775,806. In other markets across the Greater Toronto Area and around Lower Mainland of British Columbia indicated an 20 per cent increase year over year in condo price.
In the report, the company states that condos were was the only type of property to appreciate on a quarter over quarter basis, therefore rising 1.1 per cent in the last three months of the year. Also the prices of bungalows and two storey homes dropped by 0.2 per cent and 0.3 per cent quarter over quarter.
The president and CEO of Royal LePage said “To prospective homeowners in our largest cities, condominiums represent the last bastion of affordability. This is especially true for first time buyers whose purchasing power has been reduced by tightening mortgage regulations.”