According to the Royal LePage House Price Survey released October 14, home prices in the third quarter of 2015 experienced moderate to strong increases in most Canadian markets, compared to last year.

Although the crude oil shock is still affecting the economy, Canada’s non-energy sectors are starting to regain momentum as a lower Canadian dollar is greatly increasing exports, especially to the U.S., supporting consumer confidence and positively impacting Canada’s real estate markets.

According to the newly-introduced Royal LePage National House Price Composite, comprised of house values in 53 of the country’s largest real estate markets, Canadian home prices increased eight per cent year-over-year to $502,643 in the third quarter. Two-storey homes saw increases of 9.9 per cent, while the price of a bungalow rose 6.8 per cent. Condominiums saw a lesser increase of 2.7 per cent year-over-year.

“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 Royal LePage CEO Phil Soper in a press release. “In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families.”

“Unlike the economic results seen in recent years, 2015 has been positive for Ontario, resulting in strong consumer confidence and increased housing market activity,” Soper continued. “The strength of the U.S. economy coupled with a lower Canadian dollar has greatly increased sales in Ontario’s manufacturing and services export industries.  Domestically, rising economic fortunes, underpinned in part by higher residential real estate values, provide consumer-driven support for a wide range of industries, from financial services to the auto sector, further sustaining economic momentum and housing demand in a number of Ontario regions.”