Canada's housing market will continue to be strong this year, with rising property values expected in all major markets, real estate brokerage firm Royal LePage said Thursday.
The company's forecast called for prices across to country to rise 2.8% by the end of 2012, after stronger gains last year.
Even pricey housing markets in Metro Vancouver and Toronto -- where standard two-storey homes averaged $1.1 million and $629,188, respectively, in the last quarter -- will see continued price appreciation in 2012, though the gain for Metro will be more muted, according to the broker-age firm's forecast.
Metro Vancouver is expected to see its average house price climb 2.3% to $802,000 in 2012, while Toronto is expected to see a 2.6% jump.
However, Royal LePage said stronger gains will be seen in cities benefiting from commodity-based economies, such as Calgary, Regina and Winnipeg, where price gains will be in the range of four to 5%.
According to the company, in the fourth quarter of 2011, the average price of a standard two-storey home in Canada was $375,427, up 4.2% from a year earlier.
The average rate of a detached bungalow was up 6.1% to $344,392, while condominiums gained 3.6% to $234,680.
Statistics Canada reported Thursday that its new housing price index rose 0.3% in November, following on a 0.2% increase in October, and was up 2.5% year-over-year.
Price increases in Toronto, Oshawa and Montreal offset declines in Calgary, Metro Vancouver and the Ontario metropolitan regions of Sudbury and Thunder Bay, the agency said.
In Vancouver, Statistics Canada said some builders offered promotional pricing in order to sell units, which helped push new-home prices 0.3% in November from October.
Builders in the other areas reported lowering prices in order to stimulate sales and remain competitive, while price increases elsewhere were attributed to higher material and labour costs.
The Canada Mortgage and Housing Corp. has forecast the average price of a listed homes for resale to be $363,900 this year, up 1.2% from 2011. The Canadian Real Estate Association predicted that the average price would be relatively flat at $362,700.
