Royal LePage: Canadian Housing Market Exceeds Expectations in First Quarter

Submitted by Jasmina on Thu, 2007-03-29 22:41.

The first quarter Survey of Canadian House Prices: Home prices for the first three months of this year rose almost 12% from a year ago in a clear sign that the market still has legs!

Canada’s housing market

got off to a surprisingly strong start in 2007 with average house prices rising in all major markets surveyed, according to a first quarter report released today by Royal LePage Real Estate Services. The combination of resilient consumer confidence, moderately low interest rates and improved affordability across most of the country led to greater than expected activity during the typically slower first quarter.

Toronto’s housing market

has once again been characterized by high levels of competition, particularly in the most sought after neighbourhoods of central Toronto. Rising property prices provoked some affluent purchasers, searching for homes priced in the $1-million range, being priced out of traditionally upscale neighbourhoods. Areas such as Riverdale, High Park, Parkdale and the Annex offering high-quality homes at more affordable prices subsequently received additional attention. The condominium market has remained a bright spot in Toronto’s housing market, with increases to inventory levels as new construction helps to satiate the demand of purchasers.