Newspaper article The Canadian Press

Decline in Oil Price to Impact Real Estate in 2015, According to Royal LePage

Newspaper article The Canadian Press

Decline in Oil Price to Impact Real Estate in 2015, According to Royal LePage

Article excerpt

Oil to impact home prices in 2015: study

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TORONTO - Royal LePage says the price of a Canadian home is expected to rise by a relatively modest 2.9 per cent on average in 2015 as price appreciation slows across the country.

Toronto is expected to lead the pack when it comes to price increases this year, with the realtor saying the average home price in Canada's largest city is forecast to rise by 4.5 per cent, although that would be well behind last year's pace.

Vancouver is expected to see the second-biggest average jump in prices, up 2.8 per cent, followed by a 2.4 per cent gain in Calgary, 0.6 per cent in Montreal and 0.5 per cent in Halifax among several of the major centres surveyed across the country.

The realtor says economic factors, including the plummeting price of oil, are likely to cause home prices to grow at a slower pace, particularly in Western Canada.

In 2014, prices for detached bungalows rose the most, up 6.7 on average across the country in the fourth quarter compared with a year earlier, followed by an average six per cent gain for two-storey homes and 4.5 per cent for condos.

Edmonton's condo market saw the biggest increase, shooting up 12.2 per cent to an average of $250,953 per unit. Prices in Calgary also ballooned, with standard condos shooting up 9.1 per cent year-over-year to an average of $311,644 in the latest quarter.

In Toronto, prices of detached bungalows increased by 11.6 per cent from a year ago to an average of $647,535, while prices of two-storey homes advanced 8.6 per cent to an average of $745,062.

In Vancouver, the average price of a detached bungalow and of a two-storey home each grew by more than seven per cent, to an average of $1,124,642 and $1,233.182 respectively.

Home prices remained relatively flat in Winnipeg and softened in Regina, where the average price of two-storey homes dropped 6. …

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