Realtor pre­dicts na­tional mar­ket will slow in 2016

The Guardian (Charlottetown) - - BUSINESS -

Realtor Royal LePage says it ex­pects the na­tional real es­tate mar­ket to slow this year due to erod­ing af­ford­abil­ity in Toronto and Van­cou­ver and the fall­out from de­clin­ing oil prices in Western Canada.

In its lat­est re­port, the realtor says the av­er­age price of a Cana­dian home in­creased 6.5 per cent to $500,688 in the fourth quar­ter of last year, com­pared to the same pe­riod on 2014.

The av­er­age cost of a two-storey home na­tion­wide climbed to $610,134 in the quar­ter, up nearly eight per cent com­pared with the pre­vi­ous year.

The price of a bun­ga­low rose 5.4 per cent year-over-year to $420,082, while the av­er­age price of a condo grew 3.1 per cent to $341,448.

Royal LePage says it ex­pects the av­er­age cost of a Cana­dian home to rise by a more mod­er­ate 4.1 per cent over the course of 2016.

Com­pany pres­i­dent and CEO Phil Soper says “fre­netic” price growth in cer­tain large real es­tate mar­kets is likely to mod­er­ate.

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