Royal LePage suggest that Toronto had the hottest real estate market in the
country during the second quarter, with double-digit increases in all types of
The Vancouver market was also strong with
double-digit price increases for two-storey homes and detached bungalows,
although condo prices were up a more moderate 6 per cent.
But prices were down for some types of residential
property in Montreal, Calgary and Winnipeg.
Royal LePage says other major markets across the
country saw moderate increases or flat prices for most types of housing during
the quarter, including Halifax, Fredericton, Ottawa and Edmonton.
The national average price of a bungalow was up
7.5 per cent from last year at $438,938, the average price for two-storey
detached houses rose 6.8 per cent to $471,002 and the average condo price was
$268,583, up 3.9 per cent.
Royal LePage released its quarterly report a day
before the Bank of Canada's latest interest rate announcement and an updated
outlook for economic growth.
There has been some speculation that Canada's
central bank could lower its trend-setting short-term rate to stimulate the
economy, as it did unexpectedly in January to offset the impact from a decline
in oil prices that accelerated in November.
However, Royal LePage said a further decline in
lending rates wasn't needed to boost the real estate market.
“With most Canadian real estate markets across the country advancing modestly,
and some rapidly, Royal LePage advises that a further interest rate cut by the
Bank of Canada could over-stimulate markets such as greater Toronto and Vancouver.”
It also said a decline in prices for some types of
properties in some local markets has increased buyer interest.
Dominic St-Pierre, director for Royal LePage's
Quebec region, said “the market has become more favourable for buyers and has
seen a boost in sales volumes, supported by more competitive prices.”
Ted Zaharko, a Royal LePage broker in Calgary,
said local prices have moderated only slightly despite the oil shock and
election of a new provincial government.
Royal LePage said the standard condominium price
in Calgary was up 1.6 per cent from a year ago at $291,022, while prices for
standard two-storey homes declined 3.1 per cent to $474,239 and detached
bungalows slipped 0.9 per cent to $496,689.
“The Calgary market has been remarkably stable
with only marginal price differences compared to the same period last year,”
He said the volume of transactions in Calgary was
down compared with the same time last year, when oil prices were near recent
highs, but about flat compared with the second quarter of 2013.