The Royal LePage House Price Survey released today showed continued year-over-year growth in prices across housing types surveyed in Saskatoon in the third quarter.
Standard two-storey homes witnessed the largest increase, rising by 7.0 per cent to $399,750. Detached bungalow prices also made solid gains, jumping by 5.2 per cent to $366,250. Standard condominiums remained relatively flat, edging up by 1.1 per cent to $255,000.
“A healthy mix of first-time and move-up buyers has created strong demand for both detached bungalows and standard-two storeys,” said Norm Fisher, broker, Royal LePage Saskatoon Real Estate. “Houses that are priced properly and well-presented are selling quickly.”
“Rising prices in the detached home market have also had a spill-over effect on the condominium market,” added Fisher. “The standard condominium category has become an attractive entry point for first-time buyers.”
Nationally, the average price of a home in Canada increased between 1.2 per cent and 4.1 per cent in the third quarter of 2013.
The survey showed a year-over-year average price increase of 3.7 per cent to $418,686 for standard two-storey homes, while detached bungalows rose 4.1 per cent to $381,811. During the same period, the average price for standard condominiums saw a more moderate increase, rising 1.2 per cent to $246,530. Sales volumes surged in a number of regions, as Canadians re-entered the housing market after sitting on the sidelines for more than a year – marking the end of the most significant housing market correction since the 2008-2009 global recession.
“Canada experienced a significant housing market correction over the last four quarters that most in the nation missed entirely," said Phil Soper, president and chief executive of Royal LePage. "Many regions experienced dramatic slowdowns in the number of homes trading hands, but news of double-digit unit sales declines went largely unnoticed, over-shadowed by a macabre fascination with the prospect of a U.S.-style home price collapse, which of course never transpired. Our over-heated real estate market of 2011 and early 2012 drove some to the sidelines. Home price appreciation ground to a halt for a year – a necessary breather and predictable market response."
“Our housing market turned a corner in the third quarter. Buyers returned to the streets in droves, resulting in a sharp increase in home sales. In many cities, there simply weren't enough properties on the market to satisfy demand, which put upward pressure on prices for the first time in 2013," continued Soper. “We expect this positive momentum to continue through the all-important spring market of 2014, buoyed by a combination of pent-up demand, increasing consumer confidence and continued low interest rates.”
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