Canadian home price gains ‘right on track’ -survey

* Avg price of detached bungalow up 4.6 pct at C$324,531

* Further evidence housing market is more balanced

TORONTO, Oct 19 (BestGrowthStock) – Canadian house prices recorded
near-normal gains in the third quarter, suggesting a further
shift towards balanced market conditions, real estate broker
Royal LePage said on Tuesday.

Home prices were up in all key housing types surveyed by
Royal LePage, though slightly stronger than the broker had
anticipated because of improved affordability in many regions
and low rates in a competitive mortgage market.

In the third quarter, the average price of a detached
bungalow was up 4.6 percent at C$324,531 ($315,079), compared
with a year ago. Over the same period, standard two-storey
homes rose 4.4 percent to C$360,329 while standard condominiums
rose 3.9 percent to C$226,481.

Phil Soper, president and chief executive of Royal LePage
Real Estate Services said the price gains were just below the
long-term annual average of about 5 percent. Adjusted for
inflation, price appreciation was “right on track”, he said.

The Canadian housing market has been steadily cooling in
recent months after helping to drive the economy out of
recession last year and early this year, sparking debates about
whether the sector was forming a bubble.

“Looking ahead, it is very unlikely that the period from
now to year-end can keep pace with the activity levels posted
in the overheated market of the final quarter of 2009,” Soper
said.

Home prices in St. John’s, Newfoundland, led the country’s
year-over year growth where detached bungalows were up 14
percent to C$228,025, and standard two-storey houses and
condominiums were also strong.

Winnipeg, Montreal and Vancouver also posted price
increases above the national average.

($1=$1.03 Canadian)
(Reporting by Ka Yan Ng; editing by Rob Wilson)

Canadian home price gains ‘right on track’ -survey