The Royal LePage House Price Survey released today revealed that St. John’s real estate has the largest year-over-year price gains compared to all other major Canadian cities for the property types surveyed.
The average price of detached bungalows in St. John's increased significantly, up 14 per cent over last year to $228,025, while the average price for standard two-story homes rose 13.7 per cent to $313,775. Standard condominiums saw an average price gain of 12.3 per cent to $241,850.
"St. John's real estate has made incredible gains over the past few years," Glenn Larkin of Royal LePage Royal LePage Professionals 2000* said in a news released.
"However, even though St. John's has posted strong year-over-year gains, we are starting to see the real estate market stabilize from the previous quarter. So although homes are worth more, we are not selling at the same pace we were last year and multiple offers are not as common.
"Currently the most active buyers are those looking to upgrade to the $350,000 range."
According to the survey, Canada's residential real estate market saw year-over-year growth in the third quarter as fears of a double-dip recession or a housing bubble faded. House price appreciation slowed to a more modest five per cent in the quarter, which is historically typical of balanced real estate markets.
"The year is unfolding much as we predicted, with the unusually active first half of 2010 giving way to slower markets in the later part of the year,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “Helped by very low rates in a competitive mortgage financing market, the third quarter was slightly stronger than anticipated, on new demand fuelled by improved affordability in many regions."
The Royal LePage House Price Survey highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca.