Housing prices in Regina rose 8 per cent in the third quarter of this year, compared with 2010, which is higher than the national average. Prices of some city bungalows soared 15.6 per cent, according to a survey by Royal LePage Real Estate Services.
Regina home prices appear to settling in well above $300,000 this year, according to the latest Royal LePage report.
Regina saw the average price of a detached bungalow rise 8 per cent to $316,500 from $293,000 in the third quarter of 2010, while the average price of a two-storey home rose 9.5 per cent to $300,000 during the same period, said the Royal LePage national house price survey.
The price of a standard condominium in Regina averaged $198,000 in the third quarter, up 7.3 per cent from $184,500 last year, the survey said.
This may be of interest to rental investors, who realize that Regina has the lowest apartment rental vacancy in Western Canada, at around 1 per cent, according to Canada Mortgage and Housing Corp.
The area of Regina seeing the largest increase in average price was the north, where the average price of bungalows jumped 15.6 per cent to $312,000 in the third quarter. Two-storey house prices in the north increased 13.4 per cent to $270,000.
The most expensive houses in Regina, however, are in the south, where prices average $321,000 for bungalows and $330,000 for two-storey houses.
Nationally, the average price of a home in Canada increased between 5.7 and 7.8 per cent in the third quarter of 2011 compared with the same period last year. The average price of a detached bungalow was $349,974, a standard two-storey home was $388,218 and a standard condominium was $239,300, according to the survey.
This means that Regina has among Canada's lowest house prices compared with other major ciites. But Regina may also have a much stronger potential than other cities.
Royal LePage said that the national rise in price defied expectations and suggested that record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence.
However, the third quarter of 2010 was a relatively weak period for housing prices, which makes the increase this year appear rosier than they are and may mask a decline in prices in the months ahead, it suggested. "The strength in Canada's national housing market conceals signs of predictable softening in some regions," said Phil Soper, president and chief executive of Royal LePage.
from Western Investor November 2011
