
OTTAWA -- Although it experienced uneven growth across the country, the Canadian housing market was generally buoyed by strong consumer demand in the first quarter of 2010, according to the Royal LePage House Price Survey released Thursday.
"The first quarter of 2010 continued where 2009 left off, with more Canadians enthusiastically participating in a rejuvenated residential real estate market," said Phil Soper, president and chief executive of Royal LePage Real Estate Services in a release. "One of the earliest sectors of the economy to return to growth after the difficult recessionary period, the housing sector has been a prime beneficiary of low borrowing costs and improving consumer confidence."
House prices were up across all key housing types surveyed by Royal LePage, with the average price of a detached bungalow in Canada rising 11% to $329,209 in the first quarter compared to the previous corresponding period. The price for a standard two-storey home rose 10.3% to $365,141 and the price for standard condominiums increased 10.9% to $228,963.
The survey, which looks at seven types of housing in more than 250 neighbourhoods coast to coast, found that there were three different trends across the country.
In urban centres -- like Toronto, Vancouver and Victoria -- prices dropped sharply but then rose dramatically to levels that exceeded pre-recessionary prices.
There was non-stop growth in markets such as Halifax, Ottawa, Regina, Saint John, St. John's and Winnipeg.
House prices remained relatively unchanged in centres like Calgary, Edmonton, Moncton and Montreal.
However, the report notes that price increases in all markets are expected to ease in mid- to late-2010.
"Even in our most frenzied pockets of market activity, the inevitable rise in interest rates coupled with home price appreciation will rein in demand as affordability erodes. Expect house prices to continue to rise, but the rate of appreciation should ebb steadily, month by month, throughout the remainder of the year, as balance returns to the industry," said Mr. Soper.
