August 18, 2016

Gatineau Market Favouring Buyers, But Prices Still Increasing

Over the past few years, the existing home market has eased in the greater Gatineau area. The result: a more abundant housing supply for buyers. In theory, this should lead to a slowdown in the growth of average prices. This link, however, is not always clear.

In 2015, the existing home market was favourable to buyers. Yet average prices continued to rise — by 2 per cent for single-family homes and 1 per cent for condos. This means that factors other than market conditions were likely impacting prices.

The latest Housing Market Insight focuses on one of these factors: sales mix. It examines price range effects on sales of single-family homes and condos in Gatineau. The question being considered: could the growth in average prices be partially due to more expensive properties selling at a higher rate than more affordable ones?

Figure 3 displays the growth rate of various price ranges for both housing types. It shows that in 2015:

  • Sales of medium price and higher priced single-family homes increased by 7% and 11% respectively.
  • Sales of lower priced homes decreased by 3%.
  • Condo sales increased across the board, but were too small a percentage of the overall sales mix to meaningfully impact average price.

Figure 3: Centris® Sales Level for Single-Family Homes and Condominium Units in 2015 and Growth Rate by Price Range in the Gatineau Area


Single-family homes

 Text version
Single-family homes
  Lower Price Range Medium Price Range Higher Price Range All
Price range Less than $200,000 $200,000 - $299,999 $300,000 or more  
Sales 920 1,277 637  
Growth rate -3% 7% 11% 4%

Condominiums

 Text version
Condominiums
  Lower Price Range Medium Price Range Higher Price Range All
Price range Less than $150,000 $150,000 - $249,999 $250,000 or more  
Sales 154 268 50  
Growth rate 51% 13% 72% 28%

Source: QFREB by the Centris® system, CMHC calculations

The report details how the sales growth in medium and higher priced homes has impacted the market. The data allows us to conclude that a change in the sales mix toward medium and higher priced homes did indeed push up the average price. It shows that an indicator, such as average price, can conceal a reality that requires a closer look.

Read the full report – Housing Market Insight, Gatineau

Canada

Share...


Print(opens in a new window)