TORONTO – Realtor Royal LePage says the national average home price climbed 9.2 per cent during the second quarter compared to a year ago — the largest year-over-year gain in five years.
In its latest report, the realtor says the national average home price grew to $540,223 during the quarter, fuelled by low borrowing rates.
Royal LePage says the average price of a two-storey home rose 10.7 per cent from a year ago to $619,671.
The average bungalow price climbed 7.9 per cent to $437,121, while the average condo price was $348,189, an increase of 4.2 per cent.
The real estate agency is predicting that during the second half of the year, the average home price will increase 12.4 per cent, compared to the second half of last year.
The company says that’s because the U.K.’s vote to leave the European Union will likely prevent central bankers from raising interest rates, therefore delaying any cyclical cooling of Canada’s hottest real estate markets.
“Our forecasting models, which pointed to a slowing housing market as the year progressed, included a modest increase in the cost of borrowing,” Phil Soper, president and CEO of Royal LePage, said in a statement.
“Economic and social disruptions have rocked the world once again, introducing new risks and making it very likely that the Bank of Canada will leave interest rates as is for now. Few industries are as rate-sensitive as real estate. We don’t see even a mild correction for either the Toronto or pistol-hot Vancouver markets in 2016.”
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