TORONTO – Home prices in Canada are showing no indications of falling this year, a survey by Royal LePage suggests.
A report by the real estate company said the average prices for standard two-story houses and detached bungalows went up 2.7 per cent in the second quarter of this year, compared with a year ago.
During April to June, houses were listed for an average price of $419,614, while bungalows had an average price of $386,547, according to the survey released Tuesday.
Vancouver remained the most expensive city in the last quarter, even though prices dropped year-over year. The average price for a detached bungalow fell 5.9 per cent to $1,052,500, while the average price for a standard two-storey home decreased 2.3 per cent to $1,151,250.
Nationally, condominium prices were also up, rising 1.2 per cent to a national average of $248,750.
Royal LePage suggested the upward trend in home prices will continue until at least the end of this year, projecting a three per cent increase in home prices year-over-year.
“Those hoping their predictions of a bursting bubble and cataclysmic drops in home values will come true are out of luck again,” said Phil Soper, president and chief executive of Royal LePage in a statement.
Soper said the condo market, in cities like Toronto, might decrease in the short-term but will correct itself in the long-term.
“We believe condominiums will be a housing class of increasing importance in the Canada of the future,” he said.
“In the short-term, we anticipate some market uncertainty and moderate price adjustments, particularly in Toronto which is working through a supply spike, however, the medium and long-term prognosis remains very positive. Demographic and city planning trends, in conjunction with shifting consumer preferences, remain supportive of this housing category.”
Overall, the survey found that condominium prices in most major cities were either flat or higher compared with last year, except for Vancouver which saw a drop of 3.3 per cent, and Victoria where prices fell 4.5 per cent.