Average house prices in major Canadian cities continued to rise in the second quarter, but rate of appreciation eased, according to a report released today by Royal LePage Real Estate Services.

“In second quarter, we began to see an inversion of the established geographic trends observed in the Canadian housing market over the past few years,” says Phil Soper, president and chief executive officer of Royal LePage Real Estate Services.

“Markets such as Vancouver, Toronto and Montreal where there has been frenetic activity, experienced a softening in the acceleration of price increases. While Edmonton and Saskatchewan, markets where appreciation has been growing at a slower pace, took the lead in terms of accelerated price gains.”


The average price of a detached bungalow experienced the highest appreciation rising by 7.1% to $262,845, followed by a standard condominium, which increased by 6.5% to $183,397, and a standard two-storey home, which rose to $318,390, 5.9%, year-over-year.

In most markets, an increase in inventory levels helped to curb unabated price increases. In Montreal, Toronto and the Atlantic, spikes in listings provided buyers with significantly more time and selection over the same period last year, moderating strong seller’s market conditions.

“While there has been a softening in the acceleration of price increases in many areas, there has been no corresponding softening of demand. In fact, strong economic fundamentals and low interest rates have kept demand for homes among Canadians resolutely high, and this will continue to drive prices higher,” says Soper.

Significant price increases were observed in Victoria and Winnipeg, where double-digit appreciation was sustained across nearly all categories. The Atlantic region reported the most moderate increases along with a good balance between supply and demand.