Canada’s strong housing performance has been well documented – and the envy of many countries. But would you be able to guess the hottest real estate market in the country?You might be surprised.According to the latest House Price Survey from Royal LePage, Canada’s hottest real estate market is not Toronto or Vancouver, as you might expect.It’s Calgary.Nationally, the average price of a home in Canada rose between 4.4 per cent and 6.1 per cent year-over-year in the third quarter of 2014. During this period, the average price of a standard two-storey home rose 5.5 per cent to $441,714, while detached bungalows increased 6.1 per cent to $405,101. Condominiums on average showed slightly lower year-over-year gains, posting a 4.4 per cent increase to $257,377.“In the seven years since the Canadian housing market began its recovery from the worldwide recession, home price growth has been robust, often greater than the long-term average of approximately five per cent,” says Phil Soper, president and chief executive of Royal LePage.“We are now experiencing a natural slowing in the rate of year-over-year price appreciation, with real estate markets moderating in most parts of the country, a transition to what our agents refer to as a ‘Goldilocks market,’ one that is neither too hot, nor too cold. To be clear, we expect home prices to continue to grow in the months ahead, but at a slower rate than we have seen in recent years.”
Summaries of select Canadian real estate markets:
Calgary: The housing market continues to be among the strongest in the country. Demand was strong across all housing types. The average price for standard condominiums surged 11.8 per cent year-over-year to $294,156, and detached bungalows increased 10.8 per cent to $515,844. Standard two-storey home prices were consistent with this trend, increasing 9.2 per cent to $499,811.
Edmonton: Also saw strong price appreciation across all housing types. Detached bungalow prices showed the strongest gain, increasing 6.0 per cent year-over-year to $357,240. Standard two-storey home prices rose 5.3 per cent to $379,463, while standard condominiums climbed a healthy 5.8 per cent to $232,340.
Toronto: Low levels of inventory combined with an unseasonably active August market contributed to significant price increases across all major housing types. Standard condominium prices saw the greatest increase, rising 8.0 per cent year-over-year to $383,039. Detached bungalows rose 7.2 per cent to $618,088, while prices for standard two-storey homes increased 7.6 per cent to $733,317.
Vancouver: Price increases remained strong in the third quarter. Detached bungalows saw the largest increase, climbing 6.1 per cent to $1.13 million. Standard two-storey homes also experienced strong growth, rising 5.6 per cent to $1.22 million. Standard condominium prices cooled slightly by 0.2 per cent to $502,869.
Ottawa: The slower winter and spring seasons left the market with a surplus of inventory in the third quarter, holding prices relatively flat in the region. Detached bungalow and standard two-storey home prices each increased by 1.2 per cent year-over-year, to $403,091 and $406,264, respectively. Standard condominium prices declined slightly, dropping 0.3 per cent to $258,132.