Average home prices up from year ago, but growth will slow: Royal LePage
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EmailPrint..Topics:Economy, Government & PolicyEarnings.The Canadian Press, On Tuesday April 12, 2011, 10:10 am
By The Canadian Press
TORONTO - The "tepid pace" of improvement in employment will result in more moderate increases in housing prices this year, according to a new report by real estate brokerage Royal LePage.
Phil Soper, president and chief executive of Royal LePage Real Estate Services, said that in most markets lower, single-digit percentage increases are more likely for the balance of the year.
"We expect house prices will continue to creep up, but most of the excess demand created by the initial drop in interest rates has been satisfied and affordability continues to erode slowly," he said.
"While low interest rates continue to drive demand, the tepid pace at which employment levels are improving is tempering the rate of home price appreciation in many Canadian cities."
In the first quarter of 2011, the national average price of a detached bungalow rose 4.3 per cent year-over-year to $341,355, while standard two-storey homes rose 3.5 per cent to $379,388.
Standard condominiums rose four per cent to $237,919.