The price of a home in Canada increased by 1.1% year-over-year in the second quarter of this year, according to Royal LePage’s Q2 House Survey, released today.
The average home in Canada now costs $621,696.
The Survey revealed that “low interest rates and healthy employment have offset the market drag,” which has resulted in modest home price appreciation across the country.
The median price of a two-storey home rose 1% year-over-year to $727,165. The median price of a bungalow dropped 0.4% year-over-year, to $516,048, and condos are still the fastest-growing type of housing, with a median price that rose 3.8% year-over-year to $452,451.
“We now have evidence of a sustained market recovery in some of the nation’s largest markets, and signs of a price floor in other regions hit hard by the eighteen month-old housing correction,” Phil Soper, president and CEO, Royal LePage, said in a release.
Ontario cities like Toronto and Ottawa saw home prices rise by 4.3% and 6.2%, respectively.
In Quebec, the Greater Montreal Area saw the aggregate price of a home rise by 5.8% year-over-year in the second quarter of this year, to $410,828.
In Atlantic Canada (excluding Newfoundland), the aggregate price of a home also went up.
Iin Charlottetown, for instance, it went up by 3% in the second quarter, to $295,699. Prices also rose in Halifax, Fredericton, and Saint John, New Brunswick. But Moncton saw a decrease of 0.7%.
It’s a not-so-optimistic story for the Western provinces, though.
British Columbia, for instance, saw the aggregate price of a home fall 4.1% in the second quarter, to $1,208,674. This represents a decline for the second straight quarter on a year-over-year basis.
In Vancouver, condo prices also declined for the first time since the third quarter of 2014.
“In British Columbia, government intervention continues to weigh on the housing market despite strong economic fundamentals,” the report says.
Alberta also saw a dip in home prices in Calgary, Edmonton and FortMcMurray, where the aggregate price of a home fell 5%, 0.9%, and 0.1%, respectively.
In Calgary, the aggregate price of a home is now $460,089. In Edmonton, it’s $371,106, and in Fort McMurray, it’s $567,312.
Alberta’s high unemployment rate — currently at 6.6% — is partly to blame for the decreases, as is the rise in people filing insolvencies, the Survey said.
“Only in the West do we see a significant number of home buyers remaining on the sidelines, depressing sales volumes and causing prices to sag,” said Soper. “Buoyed by supportive economic conditions, many stubborn homeowners in B.C. and Alberta remain unwilling to let their precious real estate go for less than what they perceive as fair value, which has gone a long way to protecting existing home values.”
Moving forward, Royal LePage predicts that national home prices will “see a modest uptick,” rising 0.4% compared to the end of last year.