Home prices expected to hold steady through
remainder of 2023, despite anticipated drop in activity following
second consecutive increase to BoC's overnight lending
rate
Second quarter highlights:
- National aggregate home price remained almost flat
year-over-year in Q2 2023 (-0.7% over Q2 2022) and increased 4.0%
quarter-over-quarter (second consecutive quarterly increase)
- Aggregate price of a home in Canada in Q2 2023 sits just 5.6% below the
peak reached in Q1 of last year
- 94% of regions in the report posted quarterly aggregate home
price appreciation
- National year-end forecast updated. Prices in Q4 2023 now
expected to rise 8.5% over final quarter of 2022; essentially flat
over the next six months
- Chronic shortage of housing supply, due in part to sellers'
hesitancy to list, continues to put upward pressure on home
prices
- Royal LePage urges officials to
quickly increase support for more development, including
affordable, purpose-built rental buildings
TORONTO, July 13,
2023 /CNW/ - According to the Royal LePage House
Price Survey released today, the
aggregate1 price of a home in
Canada decreased modestly by 0.7
per cent year-over-year to $809,200
in the second quarter of 2023, indicating that nationally, the real
estate market is close to the point where it will have recovered
fully from 2022's post-pandemic market correction. On a
quarter-over-quarter basis, the aggregate price of a home in
Canada rose 4.0 per cent in Q2.
This was the second consecutive quarter to show positive growth
following a rapid decline in prices over the last year as a result
of the Bank of Canada's aggressive
interest rate hike campaign, which began in March of 2022.
_______________________________
|
1 Aggregate prices are calculated
using a weighted average of the median values of all housing types
collected. Data is provided by RPS Real Property Solutions and
includes both resale and new build.
|
"Almost all Canadian homeowners have seen the value of their
properties appreciate handsomely over time. A few who purchased at
the tail end of the pandemic-fueled real estate boom saw the value
of their homes drop below purchase price during the subsequent
market correction," said Phil Soper, president and CEO of
Royal LePage. "We are close to that
pivotal point where people who purchased at the peak would break
even if they sold today.
"The Bank of Canada's prolonged
series of interest rate hikes has changed where and how people
live. It has pushed some buyer hopefuls to choose less expensive
housing types or neighbourhoods. Others have chosen to relocate to
more affordable markets across their province or across the
country. And, some buyers have been pushed to the sidelines
indefinitely," Soper continued. "Economic uncertainty has caused
some potential sellers to reevaluate their plans as well. The worry
that they will be unable to find the move-up home they need in
today's tight market is a major concern. Further, there are those
who secured fixed-rate mortgages at generational lows of two per
cent or even less, who are understandably reluctant to wade back
into a market with substantially higher borrowing costs. Fewer
sellers mean fewer listings, which adds further pressure to our
chronic shortage of inventory. Access to affordable housing in
Canada will continue to be a major
social issue."
The Royal LePage National House Price Composite is compiled from
proprietary property data nationally and in 62 of the nation's
largest real estate markets. When broken out by housing type, the
national median price of a single-family detached home declined 2.0
per cent year-over-year to $841,900,
while the median price of a condominium remained essentially flat,
decreasing by just 0.4 per cent year-over-year to $586,900. On a quarter-over-quarter basis, the
median price of a home in these property segments rose 4.1 and 2.7
per cent, respectively. Price data, which includes both resale and
new build, is provided by Royal
LePage's sister company RPS Real Property Solutions, a
leading Canadian real estate valuation company.
Additional interest rate
hikes
After two consecutive rate holds in March and April, the Bank of
Canada announced last month that
it was raising interest rates by another 25 basis points, before
announcing a further quarter-point increase on Wednesday. The
central bank's overnight lending rate now sits at 5.0 per
cent.2
______________________________
|
2 Bank of Canada, July 12, 2023,
https://www.bankofcanada.ca/2023/07/fad-press-release-2023-07-12/
|
"Despite the central bank's decision to start raising interest
rates again, many buyers are still in the game. Demand remains
strong, particularly among those who have secured a rate hold,"
said Soper. "Buyers who are determined to make a purchase this
year have accepted the reality of higher initial carrying costs,
rationally surmising that rates are at or near peak and will become
more affordable before long."
Some buyers may have to adjust their expectations, widen their
geographical search parameters or acquire a property that is
smaller or more affordable in order to be successful.
Royal LePage's 2023 Canadian
First-time Homebuyer Survey found that 34 per cent of first-time
buyers in Canada purchased a home
in a more affordable region or neighbourhood than they had
originally planned, and another 32 per cent purchased a smaller
home, due to the impacts of current economic conditions, including
the increased cost of living and lending rates.
"Contrary to some buyers who appear undeterred by the central
bank's decision to restart its rate increase campaign, many
would-be sellers who do not have a critical need to move imminently
have hit the pause button again, further exacerbating the inventory
shortage," added Soper.
With record-setting immigration targets in place for the next
several years, and housing starts on the decline across the
country,3 due to labour shortages and
higher construction and borrowing costs, pressure on home prices
continues to build.
________________________________
|
3 CMHC, Monthly Housing Starts and
Other Construction Data Tables,
https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/housing-market-data/monthly-housing-starts-construction-data-tables
|
Nearing the break-even
point
Approximately one third (32%) of regions in the report posted
year-over-year aggregate price gains in the second quarter, and
only four regions reported quarterly declines.
"At this time last year, the market correction was in
full-swing, and home prices had been declining from peak for
several months. A theme I heard often was, 'Why buy today, when I
may be able to buy the same home for less tomorrow?' As some
doomsday forecasters predicted economic collapse and sharply rising
unemployment, the pull-back in demand was understandably extensive,
causing home prices to drop right across the country," said Soper.
"Yet the housing correction was short-lived. Across Canada, a return to pre-pandemic levels of
demand, and the continued lack of supply, has been applying upward
pressure on prices once again."
Just as the market correction unfolded at various times in
different regions across the country, so too has the recovery. The
aggregate price of a home in Canada remains 5.6 per cent below the peak
reached in the first quarter of last year.
The aggregate price of a home in the Greater Toronto Area, Canada's largest and second-most expensive
real estate market, posted a slight increase year-over-year in the
second quarter, however remains 7.0 per cent below the region's
peak recorded in Q1 of last year. Similarly, the aggregate price of
a home in Greater Vancouver, the
country's most expensive market, remains 6.9 per cent below the
region's peak, also recorded in Q1 of 2022. In the Greater Montreal Area, where home prices
reached their highest level a little later, in Q2 of 2022, the
aggregate price of a home sits just 2.4 per cent below the peak. Of
the country's three largest urban centres, the GMA experienced the
shortest correction period. In the prairie provinces, prices also
reached their peak in the second quarter of 2022, while some parts
of Atlantic Canada reached their
peak in Q2 and others in Q3 of last year.
Rental markets heating
up
The increased cost of borrowing is also having a significant
impact on rental markets across the country. Faced with higher
carrying costs, landlords are passing those expenses on to their
tenants by raising rent prices. In addition, would-be buyers who
were unable to qualify for lending or who have been priced out of
the resale market are moving to, or remaining in, the rental
market, which is adding additional pressure on an already low
supply of available rental units. According to Statistics Canada's
latest Consumer Price Index, rent in May was up 5.7% over the same
period last year.4
"In some cities, paying rent has become as expensive as making a
monthly mortgage payment. The difference for many young people is
the ability to acquire a down payment – whether through savings or
with the financial assistance of parents or relatives," said Soper.
"It is essential that our governments increase support for the
development of affordable, purpose-built rental buildings,
especially in cities like Toronto
and Vancouver, where it is
becoming increasingly unaffordable for young people to establish
themselves without financial help."
______________________________
|
4 Statistics Canada, Consumer
Price Index, Shelter, June 27, 2023,
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000404&pickMembers%5B0%5D=1.2&cubeTimeFrame.startMonth=05&cubeTimeFrame.startYear=2023&referencePeriods=20230501%2C20230501
|
Forecast
Royal LePage is forecasting that
the aggregate price of a home in Canada will increase 8.5 per cent in the
fourth quarter of 2023, compared to the same quarter last year. The
previous forecast has been revised upward to reflect strong
activity and price appreciation in the first half of the year.
"The Bank of Canada remains
determined to bring inflation down to its target of less than three
per cent. This has proven to be especially challenging at a time
when the job market is so strong and Canadians continue to spend,
partly due to a build-up of savings during the pandemic," noted
Soper.
"The Canadian real estate market has been in a steady state of
recovery since the start of the year. While these additional
interest rate hikes, and those potentially to come, will likely put
a damper on activity and sales volumes, demand for housing remains
very strong. We expect the rate of appreciation to moderate through
the second half of 2023, causing home prices to level off or
increase marginally."
On a quarter-over-quarter basis, Royal
LePage expects the national aggregate home price to remain
essentially flat over the next six months, with only modest
quarterly increases.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
REGIONAL SUMMARIES
Greater Toronto Area
The aggregate price of a home in the Greater Toronto Area increased 1.1 per cent
year-over-year to $1,180,400 in the
second quarter of 2023. On a quarterly basis, the aggregate price
of a home in the GTA increased 5.4 per cent.
Broken out by housing type, the median price of a single-family
detached home increased 0.7 per cent year-over-year to $1,447,600 in the second quarter of 2023, while
the median price of a condominium decreased 1.0 per cent to
$731,100 during the same period.
"The GTA housing market continues to see strong activity across
all segments, despite new listings currently sitting below levels
seen during the same period last year. Buyers in the market today
are educated, determined and prepared to make a purchase, but they
are facing tight competition once again," said Karen Yolevski, chief operating officer, Royal
LePage Real Estate Services Ltd. "The additional interest rate
hikes are causing many would-be sellers to hesitate. Our strong job
market and flexibility to work remotely means most people can
afford to wait it out, causing further supply shortages and
multiple-offer scenarios on almost every listing."
In the city of Toronto, the
aggregate price of a home decreased 1.9 per cent year-over-year to
$1,222,000 in the second quarter of
2023. During the same period, the median price of a single-family
detached home increased 4.9 per cent to $1,778,500, while the median price of a
condominium decreased 1.9 per cent to $728,700.
As affordability and low supply continue to challenge buyers,
the region's rental market is also getting tighter. In the
Greater Toronto Area, the average
rental price of a one-bedroom apartment increased more than 15 per
cent year-over-year in the first quarter of
2023.5
______________________________
|
5 TRREB, Rental Market Report,
2023 Q1,
https://trreb.ca/files/market-stats/rental-reports/rental_report_Q1-2023.pdf
|
"In Ontario, individual
landlords own a healthy proportion of rental units, with little
support from the government. Now that many of them are facing the
impacts of rising interest rates and inflation, the already short
supply of rental units is at risk, as some investors will choose,
or be forced, to pull out of the market. This will create further
scarcity of rental inventory, and put more upward pressure on
prices," said Yolevski.
Royal LePage is forecasting that
the aggregate price of a home in the Greater Toronto Area will increase 11.0 per
cent in the fourth quarter of 2023, compared to the same quarter
last year. The previous forecast has been revised upward to reflect
strong activity and price appreciation in the first half of the
year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
Greater Montreal
Area
The aggregate price of a home in the Greater Montreal Area decreased 2.4 per cent
year-over-year to $571,800 in the
second quarter of 2023. On a quarterly basis, however, the
aggregate price of a home in the GMA increased 3.7 per cent.
Broken out by housing type, the median price of a single-family
detached home decreased 2.5 per cent year-over-year to $644,100 in the second quarter of 2023, while the
median price of a condominium increased 2.0 per cent to
$461,700 during the same period.
Dominic St-Pierre, vice-president
and general manager of Royal LePage, Quebec Region, says that this
week's announcement by the Bank of Canada to increase its key lending rate by 25
basis points - the second consecutive rate hike since the central
bank hit pause in March - is a warning to some buyers who were
hoping to return to the market, that they will have to remain
patient.
"The central bank raising its key rate tells us once more that
it is committed to achieving the domestic inflation target of less
than three per cent," he notes. "With the housing shortage
continuing, this announcement is likely to dampen the enthusiasm of
many potential buyers, as we are seeing another dramatic surge in
property prices following a short-lived period of correction. On
the other hand, some buyers who have secured rate holds will rush
to make a purchase before their rates expire. However, they will
face increased competition for the little inventory available, as
many would-be sellers who do not have an immediate need to move are
holding off on listing their properties."
In Montreal Centre, the aggregate price of a home decreased 1.2
per cent year-over-year to $694,000
in the second quarter of 2023. During the same period, the median
price of a single-family detached home decreased 2.3 per cent to
$1,088,500, while the median price of
a condominium increased 5.3 per cent to $563,600.
Against the backdrop of sustained and faster-than-expected
increases, Royal LePage is now
forecasting that the aggregate price of a home in the Greater Montreal Area will increase 8.0 per
cent in the fourth quarter of 2023 compared to the same period in
2022, to $587,844. On a
quarter-over-quarter basis, this means that the aggregate home
price will remain essentially flat over the next six months in the
region, with only modest quarterly increases.
"This adjustment to our forecast is reflective of the market
imbalance between supply and demand," St-Pierre explains. "The number of active
listings is up, but that inventory is being rapidly absorbed, and
there are fewer new listings. Right now, the market is stuck in a
vicious circle not unlike what we saw during the pandemic, and this
is exacerbating the shortage of product available on the market. On
the one hand, potential sellers are hesitant to list their homes,
especially if they are benefiting from attractive mortgage rates,
so as to safeguard their assets and avoid higher monthly payments.
Those who decide to sell and also need to buy will find themselves
competing with a mass of first-time buyers who have been waiting a
long time for their chance to own a home."
Royal LePage is forecasting that
the aggregate price of a home in the Greater Montreal Area will increase 8.0 per
cent in the fourth quarter of 2023, compared to the same quarter
last year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
Greater
Vancouver
The aggregate price of a home in Greater Vancouver decreased 2.9 per cent
year-over-year to $1,274,400 in the
second quarter of 2023. On a quarterly basis, however, the
aggregate price of a home in the region increased 4.1 per cent.
Broken out by housing type, the median price of a single-family
detached home decreased 4.6 per cent year-over-year to $1,737,800 in the second quarter of 2023, while
the median price of a condominium decreased 1.8 per cent to
$769,400 during the same period.
"With a continued lack of inventory and buyers eager to
transact, home prices increased over this past quarter. The market
is returning to normal seasonal trends, although there is some
trepidation about interest rates," said Randy Ryalls, general manager, Royal LePage
Sterling Realty. "Buyers who have secured lending at the current
rate - and thus would not be immediately affected by the latest
rate hike - want to make a purchase as soon as possible. But, if we
see another interest rate hike or two, some would-be buyers will
pull out of the market entirely. Some may be forced to sell their
homes if they can't afford a mortgage renewal at the higher rate;
they may have to rent or move to a more affordable region."
In the city of Vancouver, the
aggregate price of a home decreased 1.6 per cent year-over-year to
$1,434,600 in the second quarter of
2023. During the same period, the median price of a single-family
detached home decreased 3.3 per cent to $2,561,800, while the median price of a
condominium stayed essentially flat, increasing by 0.2 per cent to
$821,600.
Ryalls noted that certain markets have maintained some strength,
which is indicative of strong buyer interest, specifically for
homes in the $1.3-to-$1.5-million range.
"Despite low supply, buyers are astute. People are getting less
and less for their money. They are less inclined to compete, and
homes that are not properly priced will sit on the market
longer."
Royal LePage is forecasting that
the aggregate price of a home in Greater
Vancouver will increase 7.0 per cent in the fourth quarter
of 2023, compared to the same quarter last year. The previous
forecast has been revised upward to reflect strong activity and
price appreciation in the first half of the year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
Ottawa
The aggregate price of a home in Ottawa decreased 4.8 per cent year-over-year
to $761,600 in the second quarter of
2023. On a quarterly basis, however, the aggregate price of a home
in the region increased 4.9 per cent.
Broken out by housing type, the median price of a single-family
detached home decreased 5.8 per cent year-over-year to $876,400 in the second quarter of 2023, while the
median price of a condominium decreased 4.0 per cent to
$400,100 during the same period.
"With a race to buy in full swing, this summer could be stronger
than normal, especially if buyers expect interest rates to continue
rising," said Jason Ralph, broker of
record and president, Royal LePage Team Realty. "After lagging
sales in the early part of the quarter picked up in June, it's
clear that buyers don't want to miss out on current rates. Some
sellers are also eager to transact if they need to move for
employment purposes, although those who are not desperate to list
are holding off."
Ralph added that although the luxury market has not been as
active as other segments, multiple-offer scenarios have returned to
the highly-sought-after single-family detached market in
Ottawa, particularly for homes
priced between $650,000 and
$850,000.
"Ottawa remains an increasingly
attractive region to Canadians and newcomers, over more expensive
alternatives. That affordability, however, hasn't necessarily
stretched to the rental market, where more attractive
neighbourhoods have seen prices go up," Ralph added. "Builders are
working on purpose-built rentals, but that won't help the market
until next year."
Royal LePage is forecasting that
the aggregate price of a home in Ottawa will increase 7.0 per cent in the
fourth quarter of 2023, compared to the same quarter last year. The
previous forecast has been revised upward to reflect strong
activity and price appreciation in the first half of the year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
Calgary
The aggregate price of a home in Calgary increased 4.4 per cent year-over-year
to $643,200 in the second quarter of
2023. On a quarterly basis, the aggregate price of a home in the
region increased 4.3 per cent.
Broken out by housing type, the median price of a single-family
detached home increased 4.0 per cent year-over-year to $736,100 in the second quarter of 2023, while the
median price of a condominium increased 6.6 per cent to
$252,000 during the same period.
"Despite an unexpected quarter-point hike to borrowing rates
last month, and another one this week, buying and selling activity
has not slowed down in Calgary. As
is anticipated during the busy spring season, home sales ramped up,
as did prices, as eager buyers jumped into the market," said
Corinne Lyall, broker and owner,
Royal LePage Benchmark. "We don't expect that potential future
increases to interest rates will cool demand much - there are just
too many buyers out there in search of a home for the amount of
inventory that is available, which is keeping the market
competitive. Demand is only amplified by the stream of buyers we
continue to see relocating from other parts of the country to
Calgary."
Lyall noted that Calgary's
condominium market continues to see strong sales as an increasing
number of buyers look for affordable options in the face of rising
prices in the detached home segment. Supply has decreased
materially compared to this time last year, to approximately one
month's worth of inventory; conditions that are fueling a seller's
market in every segment.
"We are not anticipating a drop in home prices this year,
although another rate hike could put a damper on new inventory as
cautious sellers hold off to see what happens next; a scenario that
would further tighten supply-demand conditions," said Lyall.
"Higher rates will likely push more buyers into the condo market as
their borrowing power diminishes. Although the timeline to build
new homes has improved in Calgary
since the pandemic, it is unlikely that developers will be able to
create enough new product to alleviate supply challenges in the
near future."
Royal LePage is forecasting that
the aggregate price of a home in Calgary will increase 8.0 per cent in the
fourth quarter of 2023, compared to the same quarter last year. The
previous forecast has been revised upward to reflect strong
activity and price appreciation in the first half of the year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
Edmonton
The aggregate price of a home in Edmonton decreased 5.4 per cent year-over-year
to $434,400 in the second quarter of
2023. On a quarterly basis, however, the aggregate price of a home
in the region increased modestly by 1.1 per cent.
Broken out by housing type, the median price of a single-family
detached home decreased 5.5 per cent year-over-year to $471,400 in the second quarter of 2023, while the
median price of a condominium decreased 8.7 per cent to
$193,500 during the same period.
"This time last year, we witnessed a steep decline in market
activity as the effects of higher borrowing rates kicked in. In
2023, the tides turned, and we experienced a much more normal start
to the spring market," said Tom
Shearer, broker and owner, Royal LePage Noralta Real Estate.
"Edmonton's inventory remains low,
and most new listings are only staying online for a short period of
time compared to earlier this year. Well-priced listings are
attracting multiple offers, as buyers are eager to transact before
interest rates rise again. Inventory shortages have been compounded
by hesitant sellers who are holding off on listing their
properties, as they are under the impression that they won't get as
much money today as they would have a year ago."
Shearer noted that homes at the lower price points of the market
are facing the most competition in today's high interest rate
environment.
"Frustration among buyers has not peaked just yet. First-time
buyers are willing to wait to get into the single-family home that
they want versus settling for a more affordable housing type, such
as a condominium," noted Shearer. "With interest rate increases now
smaller and more incremental, I don't imagine any additional hikes
this year will have a significant impact on home prices. 2023 will
likely conclude with near-flat price growth."
Royal LePage is forecasting that
the aggregate price of a home in Edmonton will increase 4.0 per cent in the
fourth quarter of 2023, compared to the same quarter last year. The
previous forecast has been revised upward to reflect strong
activity and price appreciation in the first half of the year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
Halifax
The aggregate price of a home in Halifax decreased 5.8 per cent year-over-year
to $495,400 in the second quarter of
2023. On a quarterly basis, however, the aggregate price of a home
in the region increased 4.4 per cent.
Broken out by housing type, the median price of a single-family
detached home decreased 6.2 per cent year-over-year to $559,700 in the second quarter of 2023, while the
median price of a condominium decreased 6.0 per cent to
$404,700 during the same period.
"After the recent wildfires ground the real estate market, as
well as virtually every other industry, to a halt in May and early
June, activity in Halifax has
resumed," said Matt Honsberger,
broker and owner, Royal LePage Atlantic. "While the region saw
brisk activity last month, comparable to 2019 levels, we expect the
summer months will slow down, as per normal seasonal trends."
Honsberger noted that a lack of inventory remains a constant
challenge for buyers - those looking for a move-up property, as
well as first-time buyers hoping to make a purchase at the entry
level of the market.
"Compared to pre-pandemic times, supply levels are sitting at
about one third of what would be considered normal for this time of
year. New listings have slowed, due in part to rising interest
rates causing uncertainty among consumers," added Honsberger. "The
lack of housing inventory is putting continued upward pressure on
prices."
Royal LePage is forecasting that
the aggregate price of a home in Halifax will increase 7.0 per cent in the
fourth quarter of 2023, compared to the same quarter last year. The
previous forecast has been revised upward to reflect strong
activity and price appreciation in the first half of the year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
Winnipeg
The aggregate price of a home in Winnipeg decreased 1.5 per cent year-over-year
to $386,900 in the second quarter of
2023. On a quarterly basis, however, the aggregate price of a home
in the region increased 4.6 per cent.
Broken out by housing type, the median price of a single-family
detached home decreased 1.5 per cent year-over-year to $426,700 in the second quarter of 2023, while the
median price of a condominium remained flat, increasing 0.1 per
cent to $253,100 during the same
period.
"Following a slowdown in the second half of last year due to
interest rate hikes, the spring market kicked off with a welcomed
boost of activity this year. More homes are attracting multiple
offers and selling over the asking price once again. While not as
frenzied as at the height of the pandemic real estate boom,
Winnipeg's real estate market has
returned to normal seasonal trends, following a slowdown last
year," said Michael Froese, broker
and manager, Royal LePage Prime Real Estate. "I expect home prices
will remain stable over the summer."
While activity has picked up over the last several months, low
inventory remains a constant challenge for buyers in Winnipeg. Additional interest rate hikes could
result in a further strain on supply.
"Many sellers who were already on the fence about listing their
property have been put off by the economic uncertainty caused by
rising lending rates. Some have decided to wait to list their
homes; others have taken their homes off the market temporarily,"
said Froese. "Meanwhile, buyers who have already secured a lending
rate are even more motivated to make a purchase."
Froese added that demand remains strongest in the
under-$500,000-segment. If supply
weakens, there will be additional upward pressure on prices.
Royal LePage is forecasting that
the aggregate price of a home in Winnipeg will increase 8.0 per cent in the
fourth quarter of 2023, compared to the same quarter last year. The
previous forecast has been revised upward to reflect strong
activity and price appreciation in the first half of the year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
Regina
The aggregate price of a home in Regina remained relatively flat in the second
quarter of 2023, decreasing a modest 0.1 per cent year-over-year to
$375,100. On a quarterly basis, the
aggregate price of a home in the region increased 3.4 per cent.
Broken out by housing type, the median price of a single-family
detached home decreased 1.1 per cent year-over-year to $404,700 in the second quarter of 2023, while the
median price of a condominium increased 10.6 per cent to
$226,300 during the same period.
"With renewed activity in the Regina real estate market, prices are rising
and have made up for the losses incurred in 2022," said
Shaheen Zareh, sales representative,
Royal LePage Regina Realty. "Well-priced homes in desirable
neighbourhoods are being scooped up quickly and we've seen an
increase in multiple-offer scenarios again. The condo market in
particular, which has more available inventory than other segments,
has been very active. As rental prices increase, many people who
were contemplating a purchase have been pulled into the entry-level
buyer market."
Zareh noted that demand continues to outpace supply in the
region, with strong activity from newcomers, as well as retirees
from major markets like Toronto
and Vancouver looking to cash in
on the equity in their homes and buy in a more affordable
market.
"Regina's job market and local economy are strong, with lots of
opportunity in the potash and canola industries. The city is an
attractive and affordable location for Canadians and immigrants,"
added Zareh. "We could see a rush of inventory hit the market next
year if those who bought during the pandemic are unable to renew
their mortgages at higher rates. But, without a significant boost
in supply, upward pressure will continue to be placed on
prices."
Royal LePage is forecasting that
the aggregate price of a home in Regina will increase 5.5 per cent in the
fourth quarter of 2023, compared to the same quarter last year. The
previous forecast has been revised upward to reflect strong
activity and price appreciation in the first half of the year.
Royal LePage House Price Survey Chart:
rlp.ca/house-prices-Q2-2023
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q2-2023
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About the Royal LePage House Price
Survey
The Royal LePage House Price Survey provides information on the
most common types of housing, nationally and in 62 of the nation's
largest real estate markets. Housing values in the Royal LePage
House Price Survey are based on the Royal LePage Canadian Real
Estate Market Composite, produced quarterly through the use of
company data in addition to data and analytics from its sister
company, RPS Real Property Solutions, the trusted source for
residential real estate intelligence and analytics in Canada. Commentary on housing and forecast
values are provided by Royal LePage
residential real estate experts, based on their opinions and market
knowledge.
About Royal LePage
Serving Canadians since 1913, Royal
LePage is the country's leading provider of services to real
estate brokerages, with a network of approximately 20,000 real
estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate
company to have its own charitable foundation, the Royal LePage
Shelter Foundation, which has been dedicated to supporting women's
shelters and domestic violence prevention programs for 25 years.
Royal LePage is a Bridgemarq Real
Estate Services Inc. company, a TSX-listed corporation trading
under the symbol TSX:BRE. For more information, please visit
www.royallepage.ca.
SOURCE Royal LePage Real Estate Services