According to the Q2 Royal LePage House Price Survey, the average Canadian home price increased between 3.9 and 5.2 per cent in the second quarter of 2014. The Market Survey Forecast, released in conjunction with the House Price Survey, predicts that house prices will increase steadily for the remainder of the year.

Price increases were reported for all housing types throughout the country, including the standard condominium category. National condominium prices increased 3.9 per cent in the second quarter, to $258,501.

The survey attributes an increase in housing prices to a lack of housing inventory, particularly in major Canadian metros.

“Chronic supply shortages are driving price spikes in Canada’s major cities, masking otherwise moderate home price appreciation nationally,” says Phil Soper, president and chief executive of Royal LePage.  “While a widening affordability gap in Canada’s largest urban centres is characterizing the national market Canadians read about daily, year-over-year house price increases in most regions of the country are presently tracking below the historical average.”

Looking forward, Royal LePage predicts that the average national house price will increase by 5.1 per cent for the full year.