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TORONTO - The latest Royal LePage housing survey shows average price of a home in Canada increased between 1.2 per cent and 3.8 per cent in the fourth quarter of 2013.
It says the average cost of a standard two-storey home rose 3.6 per cent year-over-year to $418,282, while detached bungalows went up 3.8 per cent to $380,710.
Royal LePage says the price of a standard condominium rose 1.2 per cent during the quarter to an average of $246,530.
The real estate company says prices are expected to maintain a ‘‘healthy momentum‘‘ this year and rise a projected 3.7 per cent over 2013.
Renewed consumer confidence, favourable economic conditions and an increasing pool of domestic millionaires have been cited as the primary reasons for last year’s surge in luxury home sales.
Around 75 per cent of Canadian markets experienced year-on-year percentage increases in sales during 2013, with record figures in Winnipeg, Saskatoon and St John’s.
“Demand and sales are unprecedented, but what’s also striking is the increasing level of luxury that homebuyers are demanding and that homeowners are instilling in existing product. From high-end homes to condominiums, the market is evolving. It’s not only raising the bar, but price tags in the process,” says Sylvain Dansereau, Executive Vice President from RE/MAX Quebec.
RE/MAX also attributes the rise in the Greater Toronto (up by 18%) and Greater Vancouver (up by 36%) to the diminishing stock of single-family homes in the urban markets. Vancouver’s rise follows a huge slump in the market in 2012 with the region continuing to attract a high rate of international buyers.
While smaller markets like Hamilton/Burlington enjoyed record sales by 31%, ‘luxury’ homes there are priced at $750,000, while in Calgary it is priced at $1million.