Housing affordability ‘a growing challenge’

A new report says while the slump in oil is stifling house prices in provinces driven by energy markets, other sectors have picked up the slack and taken home values to new levels nationally.

The report from Royal LePage, which provides a composite price based on values in 53 of the country’s largest housing markets, finds the average home sold for $502,643 during the third quarter of 2015 — an eight per cent increase from a year earlier.

“Economic slowdowns in energy-dependent markets, most notably in western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Phil Soper, chief executive of Royal LePage, in a statement.

Soper said that, as in previous results, the national numbers are being driven by double-digit percentage increases in the greater Toronto area and greater Vancouver.

“Housing affordability is already becoming a growing challenge for many individuals and families (Vancouver and Toronto),” said Soper.

In the GTA home prices were up 11.3 per cent to $612,261 from a year ago across all housing types surveyed. Toronto’s suburbs in some cases are outpacing parts of the city. The median price of a standard two-storey home in Richmond Hill rose 18.6 per cent to $963,561 and 18% in Vaughan to $842,173 from a year ago. A standard two-storey home in Toronto was up 17.1 per cent to $961,656 during the period.