A recent third-quarter survey regarding house prices across Truro and Colchester caught our attention.
Released by Royal LePage, the survey showed a “continued pattern of uncertainty” for housing types in this area.
On the plus side, standard two-storey home prices appreciated significantly year-over-year, rising by eight per cent to $215,000.
In contrast, detached bungalows reversed their upward second-quarter trend and decreased by 2.1 per cent to rest at $169,266.
The decrease can be blamed, at least, in part, on tighter national mortgage rules, which has resulted in fewer first-time buyers (those more likely to buy those detached bungalows) entering the market.
We fully support the tighter rules by the way. The maximum amortization period, for instance, should never have been increased from 25 years to 30 years in the first place and reversing it lessons the likelihood of a U.S.-style housing market meltdown occurring.
As for the eight per cent increase for two-storey homes locally, there’s no real explanation given but we believe it should be regarded as a vote of confidence for this area.
After all, there are many areas outside of Halifax Metro where houses of all types are not selling – period. Driven through Yarmouth lately?
But the greater Truro area offers close proximity to good schools, work (for the non-commuters to metro and elswhere) and a new hospital. In addition, house prices are a real bargain compared to metro so we are not surprised at all by the increase.
In fact, with metro virtually bursting at the seams don’t be surprised if this market turns very hot in a decade or two.
Nationally, house prices in Canada increased between 1.2 per cent and 4.1 per cent in the third quarter of 2013.
And, according to the Canadian Real Estate Association, the national average price for homes sold in last month was $385,906, an increase of 8.8 per cent compared with a year ago.
That puts at least a portion of the homes surveyed in this area in pretty good company and that’s something worth shouting about.