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.

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.

( @8 J4 O/ i( G: w, k5 ?* FTwo-storey houses dropped 13.8 per cent year-over-year to $342,857 in the Edmonton market.

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9 g9 y2 H! U4 [) \* K7 G. tFont:****A standard condominium tumbled 18.8 per cent from last year to $216,667.

9 v( [. n! P5 o) n' |% zAcross Canada, the survey found, on average, standard condos rose by 0.2 per cent to $243,529.

3 h2 ^; y: [8 @Standard two-storeys increased by 0.1 per cent to $408,927 while the average price of detached bungalows remained stable at $240,000.

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.
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2 |  w  n0 {( Y- e! ~7 i"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.
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The report said despite dropping year-over-year prices in Alberta, the resource-rich economy is strong and unemployment is low.

( ~+ Q/ D$ f! ]; U& j"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.

* n% x  b2 s- m/ M. R: \) p' X- J- pThe 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.
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bmah@thejournal.canwest.com