The aggregate price of a home in the region increased 24.6 per cent year-over-year to $490,271 in the fourth quarter, the real estate firm said
TORONTO — House prices in Waterloo Region rose faster than in any other community in Canada in the last three months of 2017, according to a report from Royal LePage.
The aggregate price of a home in the region increased 24.6 per cent year-over-year to $490,271 in the fourth quarter, the real estate firm said Wednesday.
The median price of a two-story home in the region jumped 25.1 per cent to $519,970 while the median price of a bungalow increased 24.9 per cent to $448,855. The median price of a condo rose 12.6 per cent to $286,868.
Nationally, the price of a home increased 10.8 per cent year-over-year to $626,042 in the quarter. That figure is based on data from 53 markets across the country.
“The seller’s market in Kitchener, Waterloo and Cambridge continued to be strong through the final months of 2017, which is a trend we fully expect to carry over into the new year,” Keith Church, broker of record at Royal LePage Grand Valley Realty, said in a news release.
“With aggregate home prices coming in just under $500,000, favourable interest rates and regional growth of 15,000 people annually, we expect to see continued robust activity in Kitchener, Waterloo and Cambridge real estate on the horizon,” he said.
Nationally, Royal LePage said the median price of a two-storey home rose 11.1 per cent year-over-year to $741,924, and the median price of a bungalow climbed 7.1 per cent to $522,963.
The real estate firm said that the median price of a condo grew faster than any other housing type studied, rising 14.3 per cent to $420,823 on a year-over-year basis due to gains in many of the largest markets.
In the Greater Toronto Area, the median price of a condo grew 19.5 per cent year-over-year to $476,421, while in the City of Toronto, the cost of a condo rose 19.6 per cent to $515,578.
In Greater Vancouver, condominiums followed a similar pattern during the quarter, rising 20.2 per cent to $651,885, while the median price of a condo unit in the City of Vancouver rose 18.7 per cent to $775,806..
In a separate report that examined luxury home sales, Sotheby’s International Realty said sales in the Greater Toronto Area of homes over $1 million in 2017 climbed five per cent compared with a year earlier, boosted by condo sales. Sales of condos over $1 million in Canada’s largest city climbed 59 per cent compared with 2016, while sales of those over $4 million rose 82 per cent.
Sotheby’s CEO Brad Henderson said the condo market’s strength is persisting because there’s a “scarce” number of affordable, family homes in the city and surrounding regions, and increasing numbers of empty-nesters looking to move closer to their kids downtown.
“The condo market will continue to be a strong and resilient class of real estate,” Henderson said.
“It is a much more affordable opportunity, even in the luxury level, and there is considerable demand.”
Royal LePage said the GTA showed signs of slowing as 2017 drew to a close, notably in the single-family detached segment.
In the fourth quarter, the median price of a two-storey home and bungalow in Toronto and surrounding area fell by 2.0 and 2.4 per cent respectively on a quarter-over-quarter basis.
The company says condos were the only segment to appreciate on a quarter-over-quarter basis among all housing types, rising 1.1 per cent in the final three months of the year.
At the same time, the price of two-storey homes and bungalows fell 0.3 and 0.2 per cent quarter-over-quarter, respectively.
“To prospective homeowners in our largest cities, condominiums represent the last bastion of affordability,” said Royal Lepage CEO Phil Soper.
“This is especially true for first-time buyers whose purchasing power has been reduced by tightening mortgage regulations.”
With files from The Canadian Press