Strong demand for homes fuelled a rise in average house prices, year-over-year, according to a third-quarter report released today by Royal LePage Real Estate Services.

Although historically low interest rates have made this one of the most affordable times for Canadians to purchase a property, buyers were paying the highest average prices on record for their homes during the third quarter.

Inventory levels could not keep pace with soaring demand in Vancouver and the Atlantic region, which experienced some of the highest price hikes, followed closely by Montreal. The arrival of summer typically means a seasonal slowdown, but there was no breather in the Toronto and Vancouver housing markets, where there was record sales activity in the third quarter.

Strong demand was a major factor in the upward climb of house prices across the country, however the pace of appreciation is slowing in Edmonton, Ottawa, Halifax and Toronto, markets which experienced more balanced conditions as listings were replenished. Calgary, with its abundance of “for sale” signs, has become a buyer’s market.

“We are starting to see a trend toward more balanced conditions as inventory accumulates and the pace of average price appreciation slows in many regions,” said Phil Soper, president, Royal LePage Real Estate Services, in a news release.

Of the 76 markets with detached bungalows, 92%; of 76 markets with standard two-storey homes, 89% appreciated; and of 68 markets with standard condominiums, 85% increased in value.

Year-over-year, the average value of a detached bungalow rose to $235,055 (+6.9%), a standard two-storey home increased to $262,016 (+6.4%), and a standard condominium appreciated to $149,772 (+7.0%).

http://www.newswire.ca/releases/October2003/06/c8193.html