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Canada's housing market both vigorous and stable ( |7 j+ r# b4 s* {& f5 v. \
) K* x. n6 E {4 R+ X; [; O
- Country's market poised to show growth throughout 2006 -
9 F" l( i" d/ F
$ g5 `8 N/ p' L# [, H5 H( F& i TORONTO, Sept. 28 /CNW/ - For most of Canada, the housing market
0 E0 K. B3 e; y6 W! Oexhibited moderate price increases and stable unit sales during the third
% ]2 {* b$ z' _" _, d+ z0 B/ cquarter. Wide regional variances continued to be the dominant characteristic
" m5 M; u, m* @4 V" v0 oin the market, exemplified by frenzied levels of activity and double digit9 W- {! l I7 G, d8 K: X
price gains observed in the energy and commodity rich Western provinces, and7 S( R' O. |& r8 p
more reasonable sales volumes and moderate price appreciation in Ontario,
) ^# j5 n8 [5 E# c) o2 _Quebec and Atlantic Canada, according to a report released today by Royal+ y$ ]$ f3 {' f/ | r
LePage Real Estate Services.
( O y2 t/ U: r" w" C& c8 i7 q; i! [& J
Nationally, market trends established through the first three quarters% K' d; n w2 C6 f1 F) j) M0 @7 R* Y
are forecast to continue for the remainder of the year. Robust economic! R6 {, A/ p+ \7 G% S# B! \# v
conditions, low unemployment rates, modestly growing salaries and wages, and: V8 F5 T) u9 {6 V: z, L
sound consumer confidence contributed to the overall strength of the
; Z* x4 p6 n M/ o3 p6 g6 {residential real estate sector.
/ d# }3 O8 x' `5 r" Y$ W3 \: ^7 p5 i: w/ h$ D0 V
Of the housing types surveyed, the highest average price appreciation
8 i, G5 P2 r, T( [$ aoccurred in detached bungalows, which rose to $300,365 (+16.3%)
( `1 q: z' C/ Cyear-over-year, followed by standard condominiums, which rose to $211,562) f6 ^2 _3 b; L3 H* a$ o
(+14.2%), and standard two-storey properties, which increased to $365,380
3 A2 }* @) d" v9 [1 Y$ ~(+13.2%).
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"Canada's sturdy housing market continued to demonstrate steady growth9 o0 l9 u1 `3 s- ?0 a: M: G
during the third quarter. For all but the west, we have moved on from the
1 r; f) z$ O) r1 T5 @& o# S+ ~frenzied expansion that characterized the first half of this decade, and are
7 F' v/ F% P6 T4 T. i# G/ t t: fpoised to show continued growth at a more moderate pace," said Phil Soper,2 M2 f! v+ q" X9 P4 ?% l: M
president and chief executive officer, Royal LePage Real Estate Services.
) {0 [. j7 o0 J# ~0 u" L! L1 i"Gone is the sellers' market that we have lived with for some years. We9 h* a! ^* W0 w- X5 [# W
welcome the more reliable conditions that are characteristic of a healthy
5 p7 p* O& T) W: }2 Ybalanced market."
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Despite the double-digit rise in average national house prices,
5 M% H8 V$ @3 Q/ econsiderable regional variances were exhibited again this quarter. The shift
9 v% d8 F s( ]& N; ?/ Jto balanced market conditions, which began in late 2005, has continued0 c9 ~' t2 Z* L7 E) d
throughout most of the Central and Eastern regions of the country. In the core5 h5 P, L C; S0 b
energy producing western provinces, the combination of very high in-migration,4 i6 S# [" p, r: t* n0 }
manageable affordability, and a shortage of inventory has driven record
) E V# S6 o& z. x! b+ c* }: A& bbreaking price appreciations.
; N3 U3 w; R$ p
9 u$ f5 f9 M6 V* z. g$ q) O Echoing the second quarter and supported by Alberta's rapidly expanding
$ M, l$ ]9 z1 C+ b! t K3 Teconomy, Calgary and Edmonton led the charge of Canadian cities with the
7 ]& Q/ X7 B# T2 n9 `largest house price appreciation in all housing types surveyed.2 \$ L( Z; `" i5 Q
) X" z" C8 y) m4 z7 e1 y In Ottawa and Toronto, growth remained steady, supported by solid
* m+ L7 ^1 b2 m* Reconomic fundamentals, an increase in available inventory and strong consumer2 I5 D1 A6 B& `$ u# |
confidence. While the pace of price appreciation in Ontario leveled off
, h8 ?# S9 l5 L% Mslightly, the province's real estate market remains poised for modest growth. t8 W! w1 e( r( s
In Atlantic Canada, new housing and condominium construction offered buyers
" G0 k! X- q$ a: P( C, Kgreater selection at more competitive prices, resulting in a slower rate of
" r6 i! Y a+ i" Vprice appreciation when compared with 2005.
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While the pace of growth in Canada has slowed, the domestic housing0 U# U- t, I4 x- p
market is expected to outperform the American market. The economic and( Y7 |9 S N) l3 d, q- X4 E$ g0 o
financial fundamentals driving the residential real estate sector in Canada# B8 o6 s$ W! C9 I! O
are markedly different than those found in the United States.
+ t) K/ @# Q7 K4 {6 A# ^3 b+ y0 k6 [" y+ y) v4 u
Added Soper: "Canada's housing market is likely to outperform the9 Z0 @/ h/ { f6 d" V! j
American market through 2007. A number of factors are working in Canada's
* @) ]7 O8 [8 q) U# a3 \favour, including healthy personal and governmental debt levels, the: w& h* m+ }. A; B }& q
relatively modest rise in interest rates in our country, and general' L; _% z6 ?- l$ H; [4 p6 i( N
affordability in our major cities. In addition, Americans are now seeing the( [. t+ @) R2 Y, v
downside of a tax system that encourages maximum homeowner leverage, and/ c8 q8 }4 p, W0 D
aggressive financial products such as zero- and negative-amortization! W- P* l; O3 c0 L
mortgages that work only in a high price growth environment."
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<<1 w3 w8 @+ ~ J; K+ W( [% I
REGIONAL SUMMARIES4 s( p4 ~( q( J, G* [
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Balanced conditions continued to characterize the housing market in
) m9 ~ u8 A8 u! N% _5 ?' ~: qHalifax, as significantly higher inventory levels helped to moderate the rate; \+ A! u& [+ c5 Z
of price appreciation. Buyers were increasingly choosy, taking more time
9 R. P( Y/ X4 y4 N3 a, u# Plooking for newer, low-maintenance properties that were not in need of& j; q; B) o, N/ F% W- q2 d
renovations.
/ N* Q# q+ i8 B' C
! C3 j% n& @7 J. t' C- l1 ~" w0 |1 k The housing market in Moncton remained healthy and strong as a slight) M8 T- L( D/ X2 K Y' x+ v
increase in inventory helped to moderate the rate of price appreciation2 N1 V( O. ^( G# I# R
compared to the same period in 2005. Activity was brisk throughout August and! ]# p% L. B& h6 N# W" L
September and is expected to remain this way through the fourth quarter.
1 i# G$ t- F: Q6 r7 ~
! [! i7 f5 @) p( B The housing market in Saint John underwent its traditional summer
$ x3 i5 Q3 X* ^/ eslowdown in the third quarter, with activity picking up towards the end of the
5 ]' n) {! I& p5 w% Nquarter. The local economy continued to thrive, as construction on a new* |( N) v8 K; j; s% {* w
600,000 square-foot shopping area has begun, bringing several new box stores) p% v+ A B* k5 h8 W$ Q. H
to the area. Buyers have begun seeking less expensive fixtures for their homes- x) O3 z2 q9 e1 S% \( K
and are instead opting for more affordable housing options.
2 H, l7 E6 ~' _8 ~: U$ m; t9 f
/ G i% U% T4 ^/ N4 ~ In Charlottetown, the housing market started to move towards balanced. n$ n" m0 p- E" T. d1 K8 A
conditions, as some sellers had to begin to lower the asking prices on their
. j9 w) R- l" N+ D% F9 d2 Lhomes to make them more competitive. Activity from out-of-town and US buyers
4 U& c6 k$ |& f# @+ j! r& H. h( awas down slightly compared to 2005, likely attributable to the strong Canadian5 d! K- j. l; {6 R; c
dollar. Inventory levels began to creep up in the third quarter, providing2 L2 c: {6 c# S+ `! j
buyers with more options when looking for a home.
" p% z4 A6 `+ h, s$ I8 k f. l; m- w8 R3 v M- q" O! B
Activity in St. John's slowed slightly in the third quarter, particularly
. ^% O" g/ Z6 p, c% ~9 v! uamong higher-priced properties, where there was a slight over-supply of homes
# W4 ^- l- f0 [2 {priced over $200,000. Listing periods have increased when compared with 2005,. a+ V% N0 C+ c
as some of the pent-up demand that had characterized the market over the last8 j; ~( }5 s% U% t( H3 ~
few years has been satisfied, resulting in more normal, balanced conditions.
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Montreal's housing market recorded modest increases in average house" `: u% y1 k0 ?1 U2 q
prices, due to a slight seasonal slowdown in the third quarter as inventory
, ?6 P0 `! `8 @. c6 }+ Qlevels rose. Part of this can be attributed to the fact that many renting- i! r7 S* Q8 j" f: d
first-time buyers were motivated to close on the purchase of a home by July 1,
+ J$ @$ q# y$ r1 P5 m u# vwhen rental leases expire in Quebec. Once this date has passed some of the
+ m9 u! w( A( h" ^5 Ypressure is taken off the market, allowing buyers to visit more homes before0 E u& l/ m' e* q) U+ G& {/ L
making a purchase.' j8 w/ \- L: {% k# [; q/ Y
m6 |9 ^# N1 [3 A Ottawa held its position as one of the country's most stable housing
, U$ d* f: S' B& ?" h0 [4 lmarkets in the third quarter, reinforced by a vibrant local economy and strong
9 R, a5 j$ K) nconfidence, resulting in modest increases in average house prices. The city
5 G4 C( D3 V. Jcentre remained a bright spot in Ottawa, with homes in this area attracting& L; Q& t" n" o5 P+ l7 `! W- l$ J
attention due to their convenient location and proximity to downtown
8 D2 L& z3 K4 B1 Q' E" Oamenities.* X# c- Y: d) g6 l h& R
; [9 P; K* n/ E8 g, A( `+ M The housing market in Toronto sustained healthy activity levels
1 l5 E$ G( \, h! lthroughout the third quarter, as a strong economy helped to maintain demand
3 G( W5 P" d4 p6 A0 F( {( `across the city, causing average house prices to rise moderately. Toronto has
9 i1 l5 H+ `* ]4 g0 o1 a% qcontinued to experience modest growth in average house prices, and has been
$ I- w! D B( \! n* h/ Ydriven primarily by purchasers who are buying homes as their principle
# K1 B2 U7 Z" Q3 C2 k b8 b/ Bresidence, rather than for investment.) K- t3 j6 ~0 o- ~4 L [8 p, E
! d, y! {' Z5 B- U3 x) m The vibrant Winnipeg housing market continued to show its strength as
& O% g! K7 R( T# `: w& ?# Zhouse prices rose during the third quarter. The booming local economy resulted
4 O( R! T3 ?7 Q0 Iin a historically low unemployment rate, helping to bolster consumer) ~% t9 w: h7 u
confidence and Winnipeg's ranking as the city with the lowest capitalization- y6 ~/ V2 d1 _
rate among the country's larger cities - helped to encourage buyers to enter
" A" J7 F8 d+ H2 Uthe market.0 h, ^: s% Q) C8 l3 f1 L( B! a1 V" W, w3 ~
; U. S2 {: Q+ L9 H y0 J _) f
In Regina, the market experienced a slight seasonal slowdown through; z t( M" U7 p
July, as there were fewer purchasers in the market due to summer vacations. In% T* _( `( l; l9 Q4 \
August, activity resumed to the busy pace previously seen in the spring: U. |0 K- o. I, X
months, as the influx of purchasers made it more difficult to find a home due
4 B* u6 F N$ X2 Y2 N' e; Xto the shortage of available inventory.2 x; e* G' g( ^. `; B
! Z/ H0 y# T$ L/ B
Activity in Saskatoon remained brisk as the market maintained its
3 [. j" _7 j' Pmomentum from the busy spring sales period. The economy in Saskatoon remains
3 a3 z M' b- D* o, \vibrant, as employment opportunities are abundant with many businesses
" E$ h; \2 ^- m; s7 g+ ?struggling to make hires and having to recruit outside the province.
1 d1 @. u; N& O* z, B9 D8 R$ R& w8 \% `
Calgary's housing market recorded blazing average house price increases, A' k- ]5 X' L- r# x) v
in the third quarter, in all surveyed categories. The burgeoning economy, low8 f" q" s% w4 W7 D- y# A( K, r0 }3 g9 ?
unemployment rates and low inventory levels remained the leading factors that
8 L( N. q; Z+ r) P9 {2 m! m/ |# d7 _pressured Calgary's house prices upwards. However, regardless of the soaring' b6 s- V/ ^6 W: d/ e& |
prices that characterized the market - even during the typically slower summer6 }, ^9 A0 x C2 q
season - it is expected that activity will become slightly more balanced, as
: _) D8 { z+ v4 h" b% w8 fbuyers are becoming more reluctant to participate in the frenetic activity., V# v' V) Q p* F, ]
. d$ v* H8 j/ y( w- [ Edmonton's booming local economy continued to thrive in the third quarter6 O8 A" q, L0 E
as activity in the oil sands north of the city continued to flourish. Edmonton
* X0 A4 V& r, |0 g- L$ a6 P% ^; bremained the hub of activity for those coming to work in the oil industry,/ e7 P& O7 A z4 {
maintaining tight inventory levels across the city, resulting in prices& _3 D* E' ^* p* g3 S
increasing at record levels. However, as inventory levels continued to improve
! a! ]' b. [6 P; |: Gin the third quarter the rate of price appreciation should moderate slightly( E" \- \. d- L! u
towards the end of 2006.
. q& ?- g; e% e7 y9 ^4 y! W3 n* Y; N/ E6 D+ K+ k. i
While Vancouver has seen a slight reprieve from the severe shortage of. |# Z6 q- Q H, W* ]1 i
inventory that had previously characterized the market, supply is still unable( N1 e, U$ F n$ p7 Y5 h& _
to meet demand, driving house prices upwards. Vancouver has a very diverse" R: F- p3 b* a$ e% c
group of active buyers - from first-time home buyers to baby-boomers to! e# E1 G+ u5 e. ?' V$ J3 ^0 H$ f
foreign investors - all of whom fuel the demand for houses, placing added
* ^" G3 G/ e# K% u9 Ppressure on tight inventory levels.
/ `5 c o# x _0 x) W; q5 r- D( Q4 b7 [% t3 g( }3 u
Victoria's market is vibrant and supported by strong economic8 ~! p1 T f" f/ y, k
fundamentals, fuelled by a booming tech sector and a migration of young people
! ` d& _7 B9 c/ [ }, i7 X4 u' X$ minto the city that has continued to support the area's house price increases;
, e: w$ J+ ^3 B1 T/ |while increased inventory levels have afforded buyers more time when searching
2 b3 D6 @: K! n( n0 l& A1 _$ F9 Ofor a home, helping to normalize the market's pace.. o! |! E% {& k% k# t5 h5 B* M
) [$ T5 N) u1 i2 u/ }% V
<<6 r7 j; P) d8 F" c& |
Survey of Canadian Average House Prices in the Third Quarter 2006
: }$ b7 [3 I; g
+ I- |, {- w8 S8 E! X! ~5 C -------------------------------------------------------------------------
7 l7 [- Z* _1 ]3 I# N; N Detached Bungalows Standard Two Storey
7 I. R( c, q6 l: a -------------------------------------------------------------------------) E! H# ?4 K) Q( X# ]7 m
2006 Q3 2005 Q3 Bungalow 2006 Q3 2005 Q3$ {4 ?4 H7 N5 `0 H) S
Market Average Average % Change Average Average5 S4 p ?, w4 {7 ~7 W: Y* v5 E" r2 E
------------------------------------------------------------------------- b. L2 c# {' B* H
Halifax 186,333 173,333 7.5% 198,667 199,000
+ L2 i4 v o2 ^7 j. E6 V -------------------------------------------------------------------------
, W! R; C2 a- T; P# `9 j5 m Charlottetown 145,000 141,000 2.8% 175,000 170,000 z7 _/ p8 }8 q! e8 R- v
-------------------------------------------------------------------------
! D: O4 y* z$ I0 j9 W2 ~% F Moncton 135,000 127,000 6.3% 129,000 123,0003 Z7 y8 U- g, z) g' r) H# Q5 s7 K
-------------------------------------------------------------------------
; E6 h5 l; U X& { Saint John 141,200 142,900 -1.2% - -' I, z z" R0 }8 c( g, M
-------------------------------------------------------------------------2 t8 G, ?* z. H. a# ^1 S$ R
St. John's 143,667 142,667 0.7% 200,667 202,333& k5 P, w4 _+ _$ k# ~' _
-------------------------------------------------------------------------
! C R1 C& K4 X* E& r7 j% J' ~ Atlantic 150,240 145,380 3.3% 175,833 173,583% n0 l1 Z( A0 x: v( W' ~7 d
-------------------------------------------------------------------------9 X7 S$ K% ^" Z' x1 k
Montreal 213,691 203,500 5.0% 321,141 316,185
/ E& _5 q" ^- |) u -------------------------------------------------------------------------' Y) P( @$ P) q: b4 j3 d% s
Ottawa 290,083 278,417 4.2% 285,667 273,2504 x& E' K8 }/ Y' F' R' C! p
-------------------------------------------------------------------------2 g! P+ B2 ~) {
Toronto 373,368 355,882 4.9% 481,523 474,766$ I! G1 `- M' q
-------------------------------------------------------------------------
8 m8 Q; v7 W9 M* h Y Winnipeg 181,579 159,860 13.6% 202,337 180,707- g( }' T; f6 V
-------------------------------------------------------------------------
) `. V: s7 @- W. v' h& B5 x Saskatchewan 170,667 156,083 9.3% 182,600 166,500
+ u6 k/ C1 k% K -------------------------------------------------------------------------1 w1 S, a. Y7 A) P
Calgary 395,067 252,411 56.5% 405,778 264,389
) y( ~; ]% T3 Q, F# k0 u: d -------------------------------------------------------------------------2 ~2 d4 b# p! k9 S! r$ W" j
Edmonton 286,857 194,857 47.2% 316,429 206,714
- n& l0 [7 R0 @1 p, v+ ? -------------------------------------------------------------------------
* l( d7 I6 a/ n7 o0 {2 X Vancouver 704,250 601,000 17.2% 794,000 697,5001 |9 R6 k& ^5 O1 o' Y- X
-------------------------------------------------------------------------) Y- a5 R" [1 R4 i! y3 L; p- W
Victoria 375,000 348,000 7.8% 403,000 391,000
, r1 c1 |1 c. l3 B9 Y -------------------------------------------------------------------------
* f7 Y' C, S$ _ National 300,365 258,202 16.3% 365,380 322,860
! `' F9 p% Q, J, t -------------------------------------------------------------------------
" X; c3 K8 K3 P! K! C' e% N) t. y/ o v' s' n7 Z
-------------------------------------------------------------7 q; L+ y0 x* d6 I
Standard Condominium- J1 \0 H& r( i3 j% ]
-------------------------------------------------------------0 i0 b. j# G! Z+ J. O! C# m
2-Storey 2006 Q3 2005 Q3 Condo* E% L9 R2 Y- e$ z1 N0 Y
Market % Change Average Average % Change- }2 M0 ~) `+ e/ {- s
-------------------------------------------------------------
( J3 r1 v6 e7 S3 H y* j U( V/ g Halifax -0.2% 142,000 103,000 37.9%
" `# R, O1 {0 ]1 y -------------------------------------------------------------
3 e, _5 _4 L# P' v9 t, g9 S Charlottetown 2.9% 98,000 98,000 0.0%" Y/ o+ X. K- @
-------------------------------------------------------------
: {" D; B' y; H* q1 x" e$ A Moncton 4.9% - - N/A
. \4 A9 N# T( W {% P7 O& w$ _ -------------------------------------------------------------9 ]$ w5 x+ r/ j! R% Q! F
Saint John N/A - - N/A9 N* X# O2 C& H4 ]( U$ z) K7 C! p) B
-------------------------------------------------------------
! u9 s8 e' J9 G! w) G, }7 @( D St. John's -0.8% 146,333 145,667 0.5%7 J0 \+ l' [9 S3 s6 j6 Y l5 N
-------------------------------------------------------------8 `+ x1 y3 Q7 O
Atlantic 1.3% 128,778 115,556 11.4%
" R0 y) d. s3 j3 R -------------------------------------------------------------
7 H* w) S4 S3 q Montreal 1.6% 193,190 188,016 2.8%
* I/ K: `# m3 d$ M9 B! y9 X -------------------------------------------------------------, G7 D0 A1 V+ K; O1 ~- Q
Ottawa 4.5% 181,083 172,250 5.1%
/ p; e* r" Q- s* Q0 [ -------------------------------------------------------------
9 y% F& M1 \! ~4 m* T! g! Y Toronto 1.4% 252,088 242,918 3.8%# T% N2 W6 m# V5 A' s* Y0 n% @: {
-------------------------------------------------------------
; c; u% z6 D0 M1 j9 }( m Winnipeg 12.0% 105,648 96,008 10.0%* y+ A+ _, ~( _( q; t
-------------------------------------------------------------
4 g9 Z, O g( g# N( q* q- H Saskatchewan 9.7% 106,250 101,000 5.2%
% ^4 y* e j; n" K% y# L0 p/ S -------------------------------------------------------------
: I# [2 }! x9 T s& ^ Calgary 53.5% 245,844 153,867 59.8%
9 A% W$ W& m! K# x7 K -------------------------------------------------------------, O; G R/ T$ q9 i
Edmonton 53.1% 200,433 131,500 52.4%
) N! @# A8 m1 y7 p1 s4 s p -------------------------------------------------------------5 K6 `5 K7 i+ _; T2 h' N; K
Vancouver 13.8% 366,250 323,250 13.3%" V$ z/ w4 v" f- c: w9 K5 B
-------------------------------------------------------------/ F4 M. m+ ^& N. b. V$ u) \8 o* G
Victoria 3.1% 229,000 220,000 4.1%
/ T, M9 {# N# X( f( l -------------------------------------------------------------
! z, p' D* \* A) e) K National 13.2% 211,562 185,296 14.2%
0 F$ ~# g' s( | -------------------------------------------------------------7 ~$ w! a. \" J: R0 z* h# h G" @' p
>>. ` u0 }# |- D d/ ?% H+ [
$ V- z) a) C* j4 V7 a; S- }
Average house prices are based on an average of all sub-markets examined
# T* P9 s" f. Nin the area, except for the smaller markets of Charlottetown, Moncton, Saint
" _% A! H/ N! ~( ^! s5 f$ { ]John and Victoria.
. C4 s. p$ p8 O) U0 }3 s7 B0 B) W2 O! `: h/ ]
The Royal LePage Survey of Canadian House Prices is the largest, most
: u1 B& k, S% N7 g& d' H5 pcomprehensive study of its kind in Canada, with information on seven types of; Z7 z X* D$ }4 B( `
housing in over 250 neighbourhoods from coast to coast. This release/ X( Z+ a, P# K- s$ T1 o! z- w2 V5 p
references an abbreviated version of the survey, which highlights house price& b) D# ~- ?' A
trends for the three most common types of housing in Canada in 80 communities$ E1 F4 C) X7 E8 B. w
across the country. A complete database of past and present surveys is" Y% U, W4 y+ n. h* m9 y
available on the Royal LePage Web site at www.royallepage.ca, and current! ^; f$ s( L" J
figures will be updated following the end of the third quarter. A printable- L# T7 q" X$ v9 a) Z
version of the third quarter 2006 survey will be available online on
& k% w' R ?$ J+ LNovember 15, 2006.
& T& O4 T v' B- Q* f Housing values in the Royal LePage Survey are Royal LePage opinions of$ R3 S" N6 ?+ t: k
fair market value in each location, based on local data and market knowledge
; d2 Q9 u+ W, |! ~! ~provided by Royal LePage residential real estate experts. Historical data is
3 j/ M3 H# `0 R- L; J6 `- bavailable for some areas back to the early 1970s. |
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