Royal LePage released its quarterly House Price Survey this morning, noting strong house price gains in the third quarter of 2013. The survey reports that the average price for a home in Canada increased between 1.2% and 4.1%. Royal LePage president and CEO Phil Soper attributed the increase to the “sharp increase in home sales” brought on by buyers who “returned to the streets in droves” in the third quarter. The survey reports that higher demand “put upward pressure on prices for the first time in 2013.”
In Ottawa, residential home prices saw year-over-year increases while an increased inventory of condominium properties “drove slight price declines.” The average price of two-storey homes saw an increase of 2.4% to $401,500, with bungalows increasing in price by 2.3% to $398,417. Standard condos declined by 1.1% to an average price of $259,000. The House Price Survey notes that “a strong demand for higher-end housing” was a driving factor behind the residential price increases in the third quarter.
Across the country, the average price of a standard two-storey home increased 3.7% year-over-year, rising to $418,686, while detached bungalows saw a price increase of 4.1% to $381,811. Condominiums saw a “more moderate increase” for the same period, rising 1.2% to $246,530. Soper expects that, while interest rates “must of course rise from current historical lows, we anticipate the change to be modest in the medium term. As the country emerges from this extended correctional cycle, we believe the real estate market stimulus previously provided by low interest rates will be replaced by a strengthening labour market and true economic recovery.”
For additional details regarding the House Price Survey, please visit the Royal LePage website. If you would like more information on current trends in the Ottawa real estate market, please contact us at any of our branch locations, or search for a sales representative who can help you.
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