Double-digit declines for Edmonton home prices

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EDMONTON - While average resale home prices across Canada nudged upward in the third quarter, Edmonton saw double-digit declines from last year in bungalows, two-storeys and standard condos, says a report released today by real estate firm Royal LePage.
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The average Multiple Listing Service sale price for an Edmonton bungalow fell 11.8 per cent to $326,429 compared to the third-quarter of 2007, says the market survey.

% _6 Y# w: |3 D5 K, r' e7 fTwo-storey houses dropped 13.8 per cent year-over-year to $342,857 in the Edmonton market.

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" f6 ?  K6 D( VFont:****A standard condominium tumbled 18.8 per cent from last year to $216,667.

& i) d! j, p3 N% c2 J/ x0 iAcross Canada, the survey found, on average, standard condos rose by 0.2 per cent to $243,529.
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; S$ F% q0 z" S) u+ V7 O0 ^) p. B: hStandard two-storeys increased by 0.1 per cent to $408,927 while the average price of detached bungalows remained stable at $240,000.
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Phil Soper, Royal LePage president and CEO, said Canada's housing market is fundamentally different and stronger economically than the U.S. market being shaken by the sub-prime mortgage crisis.

"Average house price appreciation curves are beginning to flatten, but this is a completely natural reaction to the explosive gains that characterized the market earlier this decade," Soper said in a release.

The report said despite dropping year-over-year prices in Alberta, the resource-rich economy is strong and unemployment is low.

+ o2 L( \4 u- y! i  {"As such, the recent price decline is merely a correction to the dramatic run-up in prices that both Edmonton and Calgary experienced in the past few years," the report said.

& L. z/ j- v4 i) A% J4 C" lThe survey said the year-over-year drop in the Calgary market varied from a decline of 8.7 per cent for a standard two-storey home, 8.2 per cent for a standard condominium and 6.2 per cent for a detached bungalow.

bmah@thejournal.canwest.com