The Leader-Post January 10, 2014 - REGINA - The average price of detached bungalows and two-storey homes in Regina actually decreased in 2013, while condominium prices increased marginally, according to the Royal LePage house price survey and market forecast released Thursday.
Prices for detached homes in Regina fell slightly in the fourth quarter, with standard two-storey homes dropping 3.2 per cent year-over-year to $370,250 and bungalows remaining relatively flat, posting a 0.5 per cent decline to $331,500, the report said. At the same time, standard condominiums posted a slight increase of 0.6 per cent to $212,000.
“We saw a very different residential real estate market in Regina this year when compared to 2012,” said Mike Duggleby, managing partner of Royal LePage Regina Realty. “(In 2012), supply was constrained, which pushed prices up. In contrast, the market flipped in 2013 and there was an increase in the number of homes available, which put downward pressure on prices,” Duggleby said.
As a result, the attitude of Regina home buyers has shifted slightly. “Where once homebuyers were afraid to miss out on a property and would bid aggressively for it, they are now willing to wait until they get what they perceive as a fair price,” Duggleby said.
Even with the slight retrenchment in average prices, Duggleby said the Regina market is still very healthy. Royal LePage forecasts the Regina real estate market will bounce back in 2014, with average prices increasing by 2.5 per cent.
Royal LePage says the average price of a home in Canada increased between 1.2 per cent and 3.8 per cent in the fourth quarter of 2013.
It says the average cost of a standard two-storey home rose 3.6 per cent year-over-year to $418,282, while detached bungalows went up 3.8 per cent to $380,710.
Royal LePage says the price of a standard condominium rose 1.2 per cent during the quarter to an average of $246,530.
The real estate company says prices are expected to maintain a “healthy momentum” this year and rise a projected 3.7 per cent over 2013.
CEO Phil Soper says late 2013 saw the housing market transition to “buoyant sales volumes” and above-average growth.
He says that in the absence of “some calamitous event or material increase in mortgage financing costs,” he expects positive momentum to characterize 2014.
“We predict continued upward pressure on home prices as we move toward the all-important spring market,” he said.
“Talk of a ‘soft landing’ for Canada’s real estate market in the new year is misguided,” Soper added. “We expect no landing, no slowdown, and no correction in the near-term. Conditions are ripe for as strong a market as we saw in the post-recessionary rebound of the last decade.”
With files from The Canadian Press