Royal LePage’s newest house prices survey says demand for higher-end homes are driving up prices in the St. John’s area.
The survey, released Wednesday, found the price of an average bungalow rose 3.3 per cent, to $299,667, and the price of a standard two-storey home rose 3.9 per cent, to $408,000, in the second quarter of 2014 over last year’s prices.
The price of a standard condominium, however, dropped 1.1 per cent to $306,000.
Newfoundland and Labrador lagged far behind the national average increases, however, with bungalows, two-storey homes and condos increasing 5.2, 5.1 and 3.9 per cent, respectively, across the country.
A news release from Royal LePage says the recent severe winter in St. John’s dampened sales activity and a change in condo fee structures “has left condo prices to stagnate,” but there has been “a strong uptick in demand for high-end homes.”