Royal LePage Real Estate Services' House Price Survey and Market Survey Forecast released today show a gradual increase in prices over the last twelve months for all housing types surveyed. Historically low mortgage rates, new job creation and consumer confidence in the economy and the housing market, have led to price increases in the second quarter. Royal LePage expects the local housing market to be more balanced for the rest of the year and house prices to stabilize due to a gradual increase in inventory over the coming months.
The average price of a detached bungalow rose by 0.5 percent, to $281,161. Standard two-storey homes posted an increase of 1.4 percent, to $384,804 while standard condominiums rose 3.9 percent to $236,528.
"All types of buyers were active in the housing market in the second quarter: first time buyers, repeat buyers and even those looking for a luxury property. This is what explains the gradual increase in prices, despite the fact that inventory is slowly continuing to rise. The market is balanced which benefits both buyers and sellers. There is now less pressure on buyers which means they can take their time to choose the right property. It is also good for sellers, as they are able to sell their property for an attractive price," says Dominic St-Pierre, Director of Royal LePage for the Québec region.
Unit sales have also increased significantly. Sales of detached bungalows rose 11.8 percent, standard two-storey home sales increased by 9.4 percent and, finally, sales of standard condominiums by 4.3 percent. "The significant increase in the number of units sold is explained by various factors, including consumer confidence in the economy; these consumers believe this is a good time to make a significant investment, such as the purchase of a property. Fixed and variable mortgage rates, which remain incredibly low, are also favourable to the housing market. In addition, nearly 75,000 jobs were created in Québec over the last three months, which definitely stimulate the local economy," explains Dominic St-Pierre.
"With regard to inventory, there has been a sharp increase, ranging from 11 percent for single-family homes to 24.5 percent for standard condominiums. Supply is growing much faster than demand due to the large number of new condominiums coming on the market in the past five years. This is why we anticipate a slowdown in price appreciation for the coming months," notes Dominique St-Pierre.
By the end of 2012, average home prices should be 1.3 percent higher than the same period last year. The real estate market will continue to stabilize and moderate until the end of the year. "The second half of 2012 will be quieter. Factors that will influence prices in the second half of 2012 include the global economy and the tighter mortgage regulations recently established by the federal government. The economic situation in the U.S. is on the right track, but the global economy remains a concern due to instability in Europe, particularly in Greece and Spain," specifies Mr. St-Pierre.
"With respect to the number of units sold and the inventory, sales are expected to increase by 4.5 percent in 2012 when compared to the same period in 2011 and inventory should stabilize in the third or fourth quarter of 2012," concludes Mr. St-Pierre.
Royal LePage House Price Survey for the Second Quarter of 2012
Average home prices
| Detached bungalow | ||||
| Market | Average Q2 2012 | Average Last Quarter | Average Q2 2011 | Difference (%) Detached bungalow |
| Beaconsfield | 322,000 | 307,000 | 293,000 | 9.9% |
| Dorval | 292,500 | 295,000 | 298,500 | -2.0% |
| Pierrefonds | 287,000 | 295,000 | 287,500 | -0.2% |
| Westmount | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce/Côte-des-Neiges | n/a | n/a | n/a | n/a |
| Ville-Marie | n/a | n/a | n/a | n/a |
| Le Plateau Mont-Royal | n/a | n/a | n/a | n/a |
| Rosemont/La Petite Patrie | n/a | n/a | n/a | n/a |
| Laval | 273,000 | 285,000 | 265,000 | 3.0% |
| Brossard | 257,500 | 265,000 | 255,000 | 1.0% |
| Longueuil | 246,000 | 255,000 | 260,000 | -5.4% |
| Boucherville | 290,125 | 300,000 | 299,000 | -3.0% |
| Montréal | 281,161 | 286,000 | 279,714 | 0.5% |
| Standard Two-Storey Home | ||||
| Market | Average Q2 2012 | Average Last Quarter | Average Q2 2011 | Difference (%) Two-storey Home |
| Beaconsfield | n/a | n/a | n/a | n/a |
| Dorval | 316,500 | 305,000 | 294,500 | 7.5% |
| Pierrefonds | 392,000 | 397,000 | 372,000 | 5.4% |
| Westmount | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce/Côte-des-Neiges | 503,000 | 495,000 | 528,000 | -4.7% |
| Ville-Marie | n/a | n/a | n/a | n/a |
| Le Plateau Mont-Royal | n/a | n/a | n/a | n/a |
| Rosemont/La Petite Patrie | n/a | n/a | n/a | n/a |
| Laval | 352,250 | 360,000 | 338,000 | 4.2% |
| Brossard | 382,375 | 385,000 | 395,000 | -3.2% |
| Longueuil | 335,000 | 365,000 | 330,000 | 1.5% |
| Boucherville | 412,500 | 405,000 | 399,200 | 3.3% |
| Montréal | 384,804 | 387,429 | 379,529 | 1.4% |
| Standard Condominium | ||||
| Market | Average Q2 2012 | Average Last Quarter | Average Q2 2011 | Difference (%) Condominium |
| Beaconsfield | n/a | n/a | n/a | n/a |
| Dorval | n/a | n/a | n/a | n/a |
| Pierrefonds | 203,000 | 212,000 | 195,000 | 4.1% |
| Westmount | n/a | n/a | n/a | n/a |
| Notre-Dame-de-Grâce/Côte-des-Neiges | 250,000 | 255,000 | 245,000 | 2.0% |
| Ville-Marie | 324,500 | 321,000 | 305,000 | 6.4% |
| Le Plateau Mont-Royal | 313,500 | 323,000 | 309,000 | 1.5% |
| Rosemont/La Petite Patrie | 268,500 | 259,000 | 247,750 | 8.4% |
| Laval | 196,500 | 192,000 | 185,750 | 5.8% |
| Brossard | 185,750 | 201,000 | 192,000 | -3.3% |
| Longueuil | 176,000 | 182,000 | 175,000 | 0.6% |
| Boucherville | 211,000 | 206,000 | 195,000 | 8.2% |
| Montréal | 236,528 | 239,000 | 227,722 | 3.9% |
The Royal LePage House Price Survey is the largest, most comprehensive real estate analysis of its kind in the country. It provides information on seven types of housing in over 250 neighbourhoods from coast to coast. This release refers to an abridged version of the Survey, which highlights the evolution of prices of the three most common housing types in 80 communities across the country. You can view a complete database containing the data collected in surveys by visiting the Royal LePage website at www.royallepage.ca. Current data will be updated at the end of the second quarter. A printable version of the 2012 second quarter report will be available online on August 9, 2012.
The property values listed in Royal LePage's House Price Survey corresponds to Royal LePage's assessment of the market value of properties in each location, which is based on local data and market information provided by Royal LePage's experts in the residential real estate sector. For some regions, it is possible to access historical data dating back to the early 1970s.