As current home values plummet in the US due to the recent flood of foreclosures, the Canadian market is actually experiencing growth at what is being called a “healthy” rate.
According to the Royal LePage House Price Survey, our country’s housing market appears to be in “correction” mode. Phil Soper, the company’s president and chief executive was quoted on Canoe’s Money site as saying,” During the period which stretched from 2007 through early 2010, the Canadian housing market was characterized by often wild swings in housing activity. We believe much of that volatility has been worked out of the system and that gradual economic improvement, particularly with our employment picture, offset by the dampening effect of a gradual increase in mortgage costs, should bring a steadier housing industry through 2011.”
For more details on the Royal LePage Study, check out the article on Digital Journal. Here’s a snippet of the study showing the numbers for the Edmonton and Calgary Regions:
Housing markets in Alberta stabilized in the third quarter as inventory rose and year-over-year prices flattened. Detached bungalows in Calgary rose 2.7 per cent while standard condominiums and two-storey homes decreased by 1 and 1.1 per cent, respectively. In Edmonton, standard two-storey homes were up 3.4 per cent to $338,571, while standard condominiums were down 3.6 per cent year-over-year to $204,167.
In the third quarter, the average price of a detached bungalow in Canada was up 4.6 percent to $324,531, compared to a year ago. Over the same period, standard two-storey homes rose 4.4 percent to $360,329 while standard condominiums rose 3.9 percent to $226,481.
Although the current market is indeed indicating the anticipated slow down in the Canadian housing market, the Royal LePage study shows that the activity in the third quarter was better than expected thanks to the low borrowing rates and improved affordability in many regions.