OAKVILLE HOME PRICES SURGE UPWARD IN THIRD QUARTER
OAKVILLE, Oct 10, 2013
The Royal LePage House Price Survey released today showed significant year-over-year appreciation in the prices of detached bungalows and two-storey homes in Oakville, while standard condominium prices posted more modest growth.
Detached Bungalows led the market with a strong 11.4 per cent year-over-year increase to $490,000. standard two-storey homes also saw a sizeable increase of 8.4 per cent to $515,000, and standard condominiums rose by 1.8 per cent to $290,000.
"A lack of supply of homes for sale has fueled significant price increases," said Laurie Panchyshyn, area manager and broker, Royal LePage Real Estate Services Ltd. "In particular, demand has risen for bungalows and there is not enough available inventory to satisfy the demand."
"Executive detached homes have also been very active, which is unusual for Oakville," added Panchyshyn. "We're seeing a more competitive market in the $700,000 - $900,000 range than in the past."
Nationally, the average price of a home in Canada increased between 1.2 per cent and 4.1 per cent in the third quarter of 2013.
The survey showed a year-over-year average price increase of 3.7 per cent to $418,686 for standard two-storey homes, while detached bungalows rose 4.1 per cent to $381,811. During the same period, the average price for standard condominiums saw a more moderate increase, rising 1.2 per cent to $246,530. Sales volumes surged in a number of regions, as Canadians re-entered the housing market after sitting on the sidelines for more than a year – marking the end of the most significant housing market correction since the 2008-2009 global recession.
“Canada experienced a significant housing market correction over the last four quarters that most in the nation missed entirely,” said Phil Soper, president and chief executive of Royal LePage. “Many regions experienced dramatic slowdowns in the number of homes trading hands, but news of double-digit unit sales declines went largely unnoticed, over-shadowed by a macabre fascination with the prospect of a U.S.-style home price collapse, which of course never transpired. Our over-heated real estate market of 2011 and early 2012 drove some to the sidelines. Home price appreciation ground to a halt for a year – a necessary breather and predictable market response.”
“Our housing market turned a corner in the third quarter. Buyers returned to the streets in droves, resulting in a sharp increase in home sales. In many cities, there simply weren’t enough properties on the market to satisfy demand, which put upward pressure on prices for the first time in 2013,” continued Soper. “We expect this positive momentum to continue through the all-important spring market of 2014, buoyed by a combination of pent-up demand, increasing consumer confidence and continued low interest rates.”