12 Jul Canadian Real Estate Market Shows Signs of a Sustainable Recovery
- Nationally, home prices expected to rise modestly by 0.4% by the end of 2019 compared to 2018, driven by gains in Toronto and Montreal
- Condominium prices in Vancouver decline for first time since third quarter of 2014
- New federal government programs expected to have minimal impact on home prices
According to the Royal LePage House Price Survey released on July 10, 2019, low interest rates and healthy employment have offset the market drag caused by widespread economic uncertainty that has kept monthly unit sales volumes below the ten-year average leading to very modest home price appreciation at the national level.
“We now have evidence of a sustained market recovery in some of the nation’s largest markets, and signs of a price floor in other regions hit hard by the eighteen month-old housing correction,” said Phil Soper, president and CEO, Royal LePage. “Only in the West do we see a significant number of home buyers remaining on the sidelines, depressing sales volumes and causing prices to sag. Buoyed by supportive economic conditions, many stubborn homeowners in B.C. and Alberta remain unwilling to let their precious real estate go for less than what they perceive as fair value, which has gone a long way to protecting existing home values.”
Home price appreciation in Ontario cities heavily influenced the national results in the second quarter of 2019, driven by pent-up demand from a sluggish first quarter, a strong job market, and an influx of new residents into the GTA.
Ottawa saw home prices rise by 6.2 per cent year-over-year although the region is expected to see a more modest but healthy gain of 1.6 per cent for the full year of 2019 compared to the end of 2018. Residential price appreciation in Ontario’s Golden Horseshoe region slowed from recent rapid price gains. Aggregate prices in Niagara/St. Catharine and Kitchener/Waterloo/Cambridge were up by 3.2 per cent and 2.5 per cent, respectively, while prices in Hamilton decreased 0.9 per cent year-over-year. Other notable median price increases for Ontario cities include Kingston at 6.9 per cent year-over-year. In western Ontario, London and Windsor both experienced some of the strongest home price appreciation in the country, with median prices rising 9.5 per cent and 8.8 per cent year-over-year, respectively.
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