vancouver toronto house price

Photo: Jerry Meaden/Flickr

Prices for existing low-rise homes in Canada recorded strong growth in the second quarter of the year, especially in already hot housing market such as Toronto and Vancouver.

In Royal LePage’s House Price Survey and Market Survey Forecast, released Tuesday, growth was highest among bungalows which recorded a 7.5 per cent price gain over Q2-2014, rising to the country-wide average of $438,938. Two-storey homes followed with a 6.8 per cent increase to $471,002. Though price growth for condos was less robust, the average sale price still saw a 3.9 per cent jump to the average of $268,583.

However, these increases were largely bolstered by price surges in the country’s priciest housing markets. Two-storey houses in Vancouver, already the most expensive property type in Canada, saw the biggest percentage leap in prices on a year-over-year basis. They rose 13.6 per cent to the average sale price of $1,368,125. Toronto’s two-storey homes continued to see substantial growth, rising by 11.6 per cent to $834,728.

Prices for bungalows in Vancouver and Toronto also saw double-digit growth, while condos saw more modest increases.

Hamilton also saw substantial price growth, often seeing prices grow at similar rates as Toronto and Vancouver. In the second quarter, the average sale price for a two-storey house in Hamilton rose 13 per cent to $351,183, a percentage gain second only to Vancouver.

Royal LePage chalks up the soaring house prices to consumer confidence and better employment prospects.

According to Statistics Canada, Toronto gained 69,000 jobs between June 2014 and June 2015 and saw the unemployment rate decrease one full percentage point to 6.9 per cent. Hamilton’s unemployment rate also declined, from 6.5 per cent to 5.2 per cent in June, as the city gained approximately 5,600 new jobs (figures refer to three month moving averages, adjusted for seasonality).

“The housing industry in [Toronto and Vancouver] boasts a foundation of prosperous labour markets driving demand for housing that is in limited supply – above average price increases aren’t going away any time soon,” said Phil Soper, president and chief executive officer, Royal LePage.

“Looking to Canada as a whole, 2015 is shaping up to be a record year for housing, despite the cloud of economic uncertainty caused by low oil prices and twitchy global economies.”

Cities in oil-producing provinces saw prices falter. In contrast to the large gains seen in Toronto and Vancouver, the average price for a two-storey house and bungalow both decreased in the second quarter. Only condos measured slight price growth, rising by 1.6 per cent, year-over-year.

Royal LePage also released its price predictions for the upcoming year. Toronto is expected to see the largest percentage increase in prices with the average sale price for a home rising to $621,000 in 2015, a 9.6 per cent increase over 2014. Vancouver would follow close behind with an average of $889,000, for a rise of 9.4 per cent, year-over-year. However, the real estate company warns that if the Bank of Canada lowers the key lending rate further, it could “over-stimulate” the markets in these regions.

In contrast, Calgary is expected to see the biggest price drop among the nine cities studied. Royal Lepage is predicting the average sale price will fall 2.4 per cent from 2014 to $449,500.

For more details about the second quarter stats, check out the tables below:

Bungalow

Market Q2 2015 Average Q2 2014
Average
Y/Y% Change
Toronto $712,622 $631,286 12.9%
Vancouver $1,247,125 $1,107,290 12.6%
Hamilton $266,580 $240,416 10.9%
National $436,938 $406,454 7.5%
Edmonton $364,942 $350,401 4.1%
Victoria $484,000 $467,000 3.6%
Halifax $298,167 $292,000 2.1%
Ottawa $409,167 $401,667 1.9%
Winnipeg $316,732 $311,015 1.8%
Fredericton $202,000 $200,000 1.0%
Charlottetown $174,000 $173,000 0.6%
Montreal $295,786 $296,250 -0.2%
St. John’s $295,333 $298,000 -0.9%
Calgary $496,689 $501,200 -0.9%
Moncton $148,000 $149,648 -1.1%
Regina $328,500 $333,500 -1.5%
Saskatoon $363,500 $375,000 -3.1%
Saint John $171,800 $179,150 -4.1%

Two-storey House

Market Q2 2015 Average Q2 2014  Average Y/Y% Change
Vancouver $1,368,125 $1,204,011 13.6%
Hamilton $351,183 $310,757 13.0%
Toronto $834,728 $747,912 11.6%
National $471,002 $440,972 6.8%
Victoria $490,000 $471,000 4.0%
Edmonton $384,250 $372,112 3.3%
Ottawa $411,350 $402,250 2.3%
Halifax $368,850 $362,250 1.8%
Winnipeg $340,866 $336,037 1.4%
Charlottetown $207,000 $205,000 1.0%
Fredericton $216,000 $215,000 0.5%
Regina $372,500 $372,500 0.0%
Saskatoon $394,000 $394,250 -0.1%
St. John’s $401,833 $403,667 -0.5%
Moncton $150,000 $152,302 -1.5%
Montreal $398,214 $404,357 -1.5%
Calgary $474,239 $489,589 -3.1%
Saint John $242,500 $252,038 -3.8%

Condo

Market Q2 2015 Q2 2015 Average Q2 2014Average Y/Y % Change
Vancouver $521,425 $491,984 6.0%
Victoria $271,000 $257,000 5.4%
Toronto $402,901 $383,562 5.0%
Halifax $256,333 $245,000 4.6%
Edmonton $246,812 $236,429 4.4%
National $268,583 $258,501 3.9%
Saskatoon $271,000 $263,000 3.0%
Montreal $244,556 $239,611 2.1%
St. John’s $316,067 $310,667 1.7%
Calgary $291,022 $286,422 1.6%
Charlottetown $130,000 $130,000 0.0%
Fredericton $145,000 $145,000 0.0%
Ottawa $257,467 $257,500 0.0%
Regina $214,500 $217,500 -1.4%
Winnipeg $205,969 $209,023 -1.5%

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