Montreal posts house price gains during the fourth quarter of 2012 and further increases are anticipated for 2013

Montreal posts house price gains during the fourth quarter of 2012 and further 
increases are anticipated for 2013 
Repeat buyers and increased sales of high-end homes upwardly skewed average 
prices; 
Correction not likely if global economy continues to recover in the upcoming 
year 
MONTREAL, Jan. 8, 2013 /CNW/ - Today's House Price Survey and Market Survey 
Forecast, issued by RoyalLePage, reports that house prices on the Island of 
Montreal were up in the fourth quarter when compared with the same period last 
year. Due to the influence of new mortgage lending rules, first-time buyers 
were less active in the fourth quarter than in preceding years. However, 
repeat buyers were more active, which stimulated sales of high-end homes and 
upwardly skewed the average price of homes surveyed in the metropolitan area. 
Royal LePage is expecting the average house price to increase slightly in 
2013, although the actual number of sales is expected to slightly decrease. 
In the fourth quarter of 2012, the average price of a detached bungalow 
increased to $282,911, which was 2.2 per cent year-over-year increase. The 
average price of a standard two-storey house increased 5.3 per cent to 
$379,546, while standard condominiums rose 4.7 per cent to $240,272. 
"Given the new mortgage lending rules, which came into effect during the 
summer, first-time buyers were much less active in the market than in previous 
years. That being said however, high-end homes sold well, leaving behind a 
sizeable inventory of more affordable housing and upwardly skewed average 
house prices," said Dominic St-Pierre, director, Royal LePage Real Estate 
Services for the Quebec Region, 
"Luxury home buyers were more active this year and we're seeing homes valued 
at more than a million dollars selling quite well. However, multiple offers 
have become relatively rare in our market, with the exception of very 
desirable listings with an attractive price," added St-Pierre. 
The reluctance of first-time buyers has also had an effect on the total 
inventory of properties. "Currently, the market has a large inventory of more 
affordable homes because the new mortgage lending rules have dampened 
first-time home buyer activity compared to the same period in previous years, 
where they were more active. This decreased activity has had a direct impact 
on repeat buyers, who need to sell their current property in order to purchase 
a new one. The inventory of standard condominiums was most affected this past 
year and witnessed more than a 30 per cent increase over the previous year's 
figures," noted St-Pierre. 
In 2013, house prices will continue to rise, although more modestly, and 
should be 3.8 per cent higher by year end. In this respect,St-Pierre is 
optimistic. "Despite the fact that some financial institutions are forecasting 
that prices will remain stable or even decline, we believe that the growth 
we've seen over the last few months will continue well into 2013. The one 
drawback will be that the actual number of sales will probably see a decrease 
of 2.4 per cent. Pressure exerted by new condominium developments should also 
have a significant impact on the resale market, as it will not only boost 
competition but also slow price increases for this property type. However, the 
number of single-family homes on the market dropped in November, which is a 
sign that supply and demand should be in better balance in 2013." 
Once again this year, the biggest factor impacting Quebec's real estate market 
will be consumer confidence. "We already know that interest rates will remain 
low and that the unemployment rate will stay favourable as well, so the 
remaining key factor affecting the real estate market will be how confident 
Quebec buyers feel. The confidence level is not at its highest right now, but 
it's not at its lowest either. Any positive or negative influence on consumer 
confidence will likely be due to factors outside Quebec. While the housing 
market and the overall economy in the U.S. are showing signs of recovery, the 
situation in Europe remains concerning, and that could eventually have an 
impact on our market," concluded St-Pierre. 
House price survey in Canada for the fourth quarter of 2012 
Average house prices 
 ____________________________________________________________________
|                                      Detached bungalow             |
|____________________________________________________________________|
|                          |       |Average|       |                 |
|                          |Average| last  |Average| Difference (%)  |
|               Market     |Q4 2012|quarter|Q4 2011|Detached bungalow|
|__________________________|_______|_______|_______|_________________|
|Beaconsfield              |330,250|331,000|307,500|             7.4%|
|__________________________|_______|_______|_______|_________________|
|Dorval                    |290,000|305,000|290,000|             0.0%|
|__________________________|_______|_______|_______|_________________|
|Pierrefonds               |285,000|289,000|288,500|            -1.2%|
|__________________________|_______|_______|_______|_________________|
|Westmount*                |    n/a|    n/a|    n/a|              n/a|
|__________________________|_______|_______|_______|_________________|
|Notre-Dame-de-Grâce/      |       |       |       |                 |
|Côte-des-Neiges*          |    n/a|    n/a|    n/a|              n/a|
|__________________________|_______|_______|_______|_________________|
|Ville-Marie*              |    n/a|    n/a|    n/a|              n/a|
|__________________________|_______|_______|_______|_________________|
|Plateau Mont-Royal*       |    n/a|    n/a|    n/a|              n/a|
|__________________________|_______|_______|_______|_________________|
|Rosemont/La Petite Patrie*|    n/a|    n/a|    n/a|              n/a|
|__________________________|_______|_______|_______|_________________|
|Laval                     |279,000|276,000|271,000|             3.0%|
|__________________________|_______|_______|_______|_________________|
|Brossard                  |256,750|263,500|255,000|             0.7%|
|__________________________|_______|_______|_______|_________________|
|Longueuil                 |249,000|247,000|240,000|             3.8%|
|__________________________|_______|_______|_______|_________________|
|Boucherville              |290,375|301,000|286,500|             1.4%|
|__________________________|_______|_______|_______|_________________|
|Montreal                  |282,911|287,500|276,929|             2.2%|
|__________________________|_______|_______|_______|_________________| 
*Type of property not covered in the market 
 _________________________________________________________________
|                                    Two-storey house             |
|_________________________________________________________________|
|                          |       |Average|       |Difference (%)|
|                          |Average| last  |Average| Two-storey   |
|               Market     |Q4 2012|quarter|Q4 2011|    house     |
|__________________________|_______|_______|_______|______________|
|Beaconsfield*             |    n/a|    n/a|    n/a|           n/a|
|__________________________|_______|_______|_______|______________|
|Dorval                    |306,500|316,000|277,500|         10.5%|
|__________________________|_______|_______|_______|______________|
|Pierrefonds               |387,750|397,000|390,000|         -0.6%|
|__________________________|_______|_______|_______|______________|
|Westmount*                |    n/a|    n/a|    n/a|           n/a|
|__________________________|_______|_______|_______|______________|
|Notre-Dame-de-Grâce/      |       |       |       |              |
|Côte-des-Neiges           |499,750|510,000|470,000|          6.3%|
|__________________________|_______|_______|_______|______________|
|Ville-Marie*              |    n/a|    n/a|    n/a|           n/a|
|__________________________|_______|_______|_______|______________|
|Plateau Mont-Royal*       |    n/a|    n/a|    n/a|           n/a|
|__________________________|_______|_______|_______|______________|
|Rosemont/La Petite Patrie*|    n/a|    n/a|    n/a|           n/a|
|__________________________|_______|_______|_______|______________|
|Laval                     |334,625|358,500|320,000|          4.6%|
|__________________________|_______|_______|_______|______________|
|Brossard                  |373,200|379,000|357,500|          4.4%|
|__________________________|_______|_______|_______|______________|
|Longueuil                 |335,000|335,000|338,250|         -1.0%|
|__________________________|_______|_______|_______|______________|
|Boucherville              |420,000|419,000|370,000|         13.5%|
|__________________________|_______|_______|_______|______________|
|Montreal                  |379,546|387,786|360,464|          5.3%|
|__________________________|_______|_______|_______|______________| 
*Type of property not covered in the market 
 ________________________________________________________________
|                                 Standard condominium           |
|________________________________________________________________|
|                         |       |Average|       |Difference (%)|
|                         |Average| last  |Average|  Standard    |
|              Market     |Q4 2012|quarter|Q4 2011| condominium  |
|_________________________|_______|_______|_______|______________|
|Beaconsfield*            |    n/a|    n/a|    n/a|           n/a|
|_________________________|_______|_______|_______|______________|
|Dorval*                  |    n/a|    n/a|    n/a|           n/a|
|_________________________|_______|_______|_______|______________|
|Pierrefonds              |208,500|203,750|203,000|          2.7%|
|_________________________|_______|_______|_______|______________|
|Westmount*               |    n/a|    n/a|    n/a|           n/a|
|_________________________|_______|_______|_______|______________|
|Notre-Dame-de-Grâce/     |       |       |       |              |
|Côte-des-Neiges          |266,750|246,000|241,250|         10.6%|
|_________________________|_______|_______|_______|______________|
|Ville-Marie              |325,000|324,500|305,000|          6.6%|
|_________________________|_______|_______|_______|______________|
|Plateau Mont-Royal       |320,000|315,650|307,750|          4.0%|
|_________________________|_______|_______|_______|______________|
|Rosemont/La Petite Patrie|271,200|270,000|254,250|          6.7%|
|_________________________|_______|_______|_______|______________|
|Laval                    |195,000|194,000|190,000|          2.6%|
|_________________________|_______|_______|_______|______________|
|Brossard                 |189,000|189,000|192,500|         -1.8%|
|_________________________|_______|_______|_______|______________|
|Longueuil                |177,000|180,000|168,000|          5.4%|
|_________________________|_______|_______|_______|______________|
|Boucherville             |210,000|210,000|204,000|          2.9%|
|_________________________|_______|_______|_______|______________|
|Montreal                 |240,272|236,989|229,528|          4.7%|
|_________________________|_______|_______|_______|______________| 
*Type of property not covered in the market 
About the Royal LePage House Price Survey 
The Royal LePage House Price Survey is the largest, most comprehensive study 
of its kind in Canada, with information on seven types of housing in over 250 
neighbourhoods from coast to coast. This release references an abbreviated 
version of the survey which highlights house price trends for the three most 
common types of housing in Canada in 90 communities across the country. A 
complete database of past and present surveys is available on the Royal LePage 
Web site at www.royallepage.ca. Current figures will be updated following the 
complete tabulation of the data for the fourth quarter 2012. A printable 
version of the fourth quarter 2012 survey will be available online on February 
6, 2013. 
Housing values in the Royal LePage House Price Survey are Royal LePage 
opinions of fair market value in each location, based on local data and market 
knowledge provided by Royal LePage residential real estate experts. 
About Royal LePage 
Serving Canadians since 1913, Royal LePage is the country's leading provider 
of services to real estate brokerages, with a network of 14,000 real estate 
professionals in over 600 locations nationwide. Royal LePage is the only 
Canadian real estate company to have its own charitable foundation, the Royal 
LePage Shelter Foundation, dedicated to supporting women's & children's 
shelters and educational programs aimed at ending domestic violence. Royal 
LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed 
corporation trading under the symbol TSX:BRE. 
For more information, visit www.royallepage.ca. 
Laetitia Rampazzo High Road Communications 514.908.0110, poste 307 
Laetitia.rampazzo@highroad.com 
TammyGilmer Director, Public Relations RoyalLePage 416.510.5783 
SOURCE: Royal LePage Real Estate Services 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2013/08/c4454.html 
CO: Royal LePage Real Estate Services
ST: Quebec
NI: REL ECOSURV ECO  
-0- Jan/08/2013 11:00 GMT
 
 
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