January 8, 2013
The average price of a Canadian home is to remain virtually flat in 2013, but property values won’t collapse as the housing market undergoes a “brief, mild correction,” the Royal LePage House Price Survey concluded Tuesday.
Average home prices in Montreal are to grow 3.8 per cent this year, compared to 2012, for one of the highest rises in the country, ahead of once-hot housing markets, Toronto and Vancouver.
Home prices for the condos, bungalows and two-storey homes measured by Royal LePage all rose, on average, in Montreal during the last three months of 2012, but only because more higher-end houses were bought and sold, skewing prices upward.
Dominic St-Pierre, Royal LePage’s director for Quebec, described the Montreal forecast as “aggressive,” even though a 3.8-per-cent rise would be the lowest hike in prices for a non-recession year in a decade. Contrary to the current phenomenon of prices being skewed upward because of fewer sales of less expensive homes, St-Pierre said he expects to see a real, albeit soft appreciation in prices in 2013.
“We will see a decline in unit sales and a flattening of home prices in our largest urban markets of Vancouver and Toronto and that will have a significant dampening effect on reported national averages,” said Soper in a press release.
But Soper suggested the housing market of 2013 would resemble the one of 2009 where Canadian sales sagged, home prices remained flat, but property values held steady.
“With economic fundamentals such as employment levels improving, we expect this cyclical correction to be short-lived.”