Royal LePage: SWO sees average home price increase
July 13, 2016
On July 13, data was released from the Royal LePage House Price Survey, which gathers information on two-storey homes, bungalows and condos in 53 real estate markets across Canada.
The brokerage anticipates the average price of a home in Canada will be 12.4 per cent higher than average prices at the end of 2015.
“Our forecasting models, which pointed to a slowing housing market as the year progressed, included a modest increase in the cost of borrowing,” said Phil Soper, president and chief executive officer of Royal LePage.
Economic and social “disruptions” have introduced new risks, causing the Bank of Canada to leave interest rates as is for now, Soper said in a press release on July 13.
Canada’s real estate market showed high appreciation in the second quarter of 2016, with the highest year-over-year increase in the last five years.
The average price of a home in Canada increased by 9.2 per cent year-over-year to $520, 223 by the second quarter of 2016.
So what does that mean for the housing market in Southwestern Ontario?
Hamilton
The average aggregate price of a home in Hamilton saw a significant increase in the second quarter of 2016, reaching $408,602 – the result of a 9.6-per-cent increase year-over-year.
Bungalow type housing increased in price by 11.3 per cent year-over-year resulting in a $370,866 average price. The median price of a two-storey home also increased by 9.3 per cent, while the average condo price fell by 0.7 per cent.
“Hamilton’s increasingly diversified economy and strong employment levels, combined with the city’s proximity to Toronto for commuters, make it highly attractive to potential buyers,” said Joe Ferrante, president and broker of record of Royal LePage.
“We have fewer listings available than last year, with average time on market continuing to decrease,” he noted in a press release on July 13.
Kitchener/Waterloo/Cambridge
Aggregate house prices increased by 5.6 per cent year-over-year in the second quarter of 2016 in the Kitchener, Waterloo and Cambridge region to reach an average price of $352,551.
Two-storey homes saw a larger increase of 6.7 per cent year-over year to $373,437. Bungalows saw a smaller increase of 2.4 per cent year-over year to reach $324,563.
The average condo price remained mostly stable, seeing an increase of only 0.2 per cent to land at an average price of $209, 568.
“More buyers have been inclined to steer clear of the higher prices in the GTA region and head to Kitchener, Waterloo and Cambridge, creating a supply and demand imbalance in that market,” said Keith Church, broker of record at Royal LePage Grand Valley Reality.
The second half of 2016 will possibly see a continued price increase due to the shortage of listings, Church said in a press release on July 13.
RELATED READING
About Olivia Bowden
Olivia Bowden is a freelance writer and is currently an Editorial Intern at YP Next Home. She attends Carleton University and is completing a Master of Journalism degree. Olivia enjoys learning and writing about the Canadian real estate market.