No more ‘feast or famine’ outlook

The extreme regional disparities that characterized Canada’s real estate markets last year

TORONTO — The extreme regional disparities that characterized Canada’s real estate markets last year will narrow in 2017 as overheated areas cool and slower markets gather steam, Royal LePage says in a report released Thursday.

That trend will be driven by lower prices in Greater Vancouver and strong but moderating price growth in the Greater Toronto Area, the real estate company said.

“The disparity in home price appreciation between Canadian regions has never been greater than that seen in 2016, with rates ranging from double-digit extremes in some cities to negative growth in others,” Phil Soper, president and CEO of Royal LePage, said in a statement.

“In 2017, we anticipate a movement away from the regional extremes of real estate feast and famine — and that is a very good thing.”

Royal LePage’s national composite index of prices grew 13 per cent year-over-year to $558,153 in the fourth quarter of last year, the highest increase recorded by the index in more than 10 years. Two-storey homes led the charge, rising 14.3 per cent to $661,730, while the price of a condo was up a more moderate 7.4 per cent to $356,307.

Nationally, home prices are forecast to climb 2.8 per cent this year, Royal LePage said.

In Greater Vancouver, an 8.5 per cent price correction is expected, in spite of the fact that the province’s economy is projected to lead the country this year. Even with that decline, home prices would be $1,126,000.

“While the cost of a home in Greater Vancouver will remain the highest in the country, a modest price reset will provide much needed relief in the Lower Mainland and help reignite overall buyer activity in the region,” Soper said.

That contrasts with the outlook for GTA’s real estate market, where Soper says there is “no relief in sight” as underlying economic fundamentals remain strong. Prices in the area are expected to hit $793,000, an increase of 10 per cent.

Just Posted

WATCH: Christmas Wish Breakfast toy donations almost double

All toys donated Sunday will be given to the Red Deer Christmas Bureau and Red Deer Salvation Army

VIDEO: ‘Party bus’ goes up in flames in Vancouver

Fire crews responded to the late night blaze

Mothers Against Drunk Driving hold candlelight vigil

Four-and-a-half years ago Marilyn Rinas’ husband was killed in a collision with… Continue reading

Thousands expected at memorial for fallen police officer in Abbotsford, B.C.

ABBOTSFORD, B.C. — The streets of Abbotsford, B.C., will be lined with… Continue reading

One person dead, five others injured in early-morning crash in Kingston, Ont.

KINGSTON, Ont. — A man who was checking the damage on his… Continue reading

VIDEO: Replay Red Deer: Nov. 19

Watch news highlights from the week of Nov. 13

CP Holiday train to stop in Ponoka for another year

The popular train will feature entertainment from Colin James and Emma-Lee

Kittens rescued after allegedly being tossed from vehicle

Couple finds abandoned kittens new home through Facebook

VIDEO: ‘Party bus’ goes up in flames in Vancouver

Fire crews responded to the late night blaze

Chicken crosses B.C. road, stops traffic

Rooster makes early morning commuters wait in Maple Ridge

Red Deerian honours her brother who died in a motorcycle collision

Houaida Haddad is encouraging Red Deer residents to donate blood

Red Deer County firefighters to be recognized for Waterton help

RCMP brass will give formal recognition Monday

Ron James tries to lighten humanity’s load through humour

The comedian returns to Red Deer for shows Dec. 1 and 2

100+ Women Red Deer donate to Christmas Bureau

About $14,000 will help with Christmas hampers and toys

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month