Real estate brokerage Royal Le Page says that the Canadian housing market has hit the predicted soft landing with price increases now slower-than-normal. Even so, prices did increase by between 3.8 per cent and 6.6 per cent in the first quarter of this year compared to a year earlier. Detached bungalow prices rose 6.6 per cent to an average of $405,985. Two-storey detached home prices were up 5.3 per cent to $451,462 with Condos up 3.8 per cent to $261,782. The firm says that consumer sentiment has been affected by the oil industry decline but lower interest rates have offset some of the impact. Phil Soper, president and CEO of Royal Le Page commented: “On balance, we believe we will not be seeing the kind of appreciation observed over the last three years any time soon, as markets work through the current cycle and align with broader economic conditions. In terms of downside risk, we do not foresee a sharp decline in home prices, particularly in today’s low interest rate environment.”
Calgary’s economic concerns have pushed the city to below national average price increases, having been one of the top three for appreciation. Regina posted year-over-year price declines in the detached home category, while Saskatoon remained relatively flat. Meanwhile Toronto and Vancouver both posted at or near double-digit year-over-year price increases across all housing types surveyed, with Hamilton posting comparable gains.