According to the latest Royal LePage House Price Survey and Market Survey Forecast, released last week, average home prices in most local markets across Canada showed modest to healthy year-over-year gains in the fourth quarter of 2014.
During that time period, the average price for a Canadian home increased between 4.5% and 6.7% on a year-over-year basis. The average price for a detached bungalow increased 6.7% to $406,218, while standard two-storey homes saw an increase in price of 6.0%, rising to $443,379. Meanwhile, the national average price for standard condominiums rose 4.5% to $257,624.
Phil Soper, president and chief executive of Royal LePage, noted that real estate markets unfolded as anticipated in the fourth quarter of 2014, “with modest year-over-year price changes in most regions contrasted against continued steep price increases in Western Canada and Greater Toronto”.
Positive Price Momentum Expected in 2015
Looking ahead to the first half of 2015, “Royal LePage expects a confluence of factors and the lower cost of oil to support continued positive price momentum in the Greater Toronto Area (GTA), which should experience the highest major market price increases”. According to Royal LePage, “the natural slowing of home price appreciation we called for in the third quarter of 2014 will be delayed in Central Canada and accelerated in the West by recent developments in the energy sector”.
Soper added that “slowed growth in the price of homes will be a welcome sign for many people in the West, especially in pricy markets like Vancouver where first-time buyers have been frustrated by a hyper-competitive market and home prices that have escalated at a feverish pace.”
While the report also addressed potential threats to the health of the Canadian housing market, including sharp increases in interest rates, Soper noted that “the biggest threat to the Canadian housing market is a decline in consumer confidence, which could result from worsened employment prospects or decreased purchasing power, be it real or perceived”.
Ottawa’s Real Estate Market “Healthy and Confident”
In Ottawa, the housing market remained “healthy and confident”, with moderate price gains recorded in the last quarter of 2014. While condominiums saw prices decline 0.6% to $258,817, the average price for detached bungalows rose 2.2% to $404,708 and the price for a two-storey home increased 2.1% to $407,440. For more information about market trends in your Ottawa neighbourhood, contact one of our experienced sales representatives.
To read the full House Price Survey and Market Survey Forecast, please visit the Royal LePage website. You can also contact us directly for more information, or subscribe to our blog to receive regular updates about the latest real estate market trends. For those interested in buying or selling a home, read our online guides for buyers and sellers, or feel free to contact us for a free, no obligation market evaluation of your home. We’re happy to help you with any of your Ottawa real estate needs!
