Canada’s housing market will continue to be strong this year, with rising property values expected in all major markets, real estate brokerage firm Royal LePage said Thursday. The company’s forecast called for prices across the country to rise 2.8% by the end of 2012, after stronger gains last year. It said in the fourth quarter of 2011, the average price of a standard two-storey home was $375,427, up 4.2% from a year earlier. The average price of a detached bungalow was up 6.1% to $344,392, while condominiums gained 3.6% to $234,680. “Widespread calls for a major real estate correction in 2012 simply can’t be justified,” Royal LePage chief executive Phil Soper said in a statement. “The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand – albeit at a slower pace.” Canada Mortgage and Housing Corp. has forecast the average price of a listed home for resale to be $363,900 this year, up 1.2% from 2011. The Canadian Real Estate Association predicted the average price would be relatively flat at $362,700. Both forecasts were made in November. Royal LePage said even pricey housing markets in Vancouver and Toronto – where standard two-storey homes averaged $1.1-million and $629,188, respectively, in the last quarter – will see continued price appreciation in 2012.
Financial Post
