Real Estate markets across Canada are expected to level off in the next twelve months. An increasing inventory of homes on the market has caused prices to flatten off, and has given respite to individuals seeking a homes in a scorching market. Western Canadian markets will continue to lead the country in property value increases. Read the full article from CTV below.
A flood of new listings is expected to slow home price increases across Canada in 2007, the Re/Max real estate company predicted Wednesday (Oct 17/06). The company's 2007 outlook study found that while the number of homes listed for sale is expected to mount, demand will remain high in 17 of the markets it surveyed, including Vancouver; Victoria, B.C.; Kelowna, B.C.; Calgary; Edmonton; Regina; Saskatoon; Winnipeg; Kitchener-Waterloo, Ont.; Hamilton-Burlington; Toronto; Ottawa; Montreal; Halifax; Charlottetown; Saint John, N.B., and St. John's, N.L. Sales volume next year is expected to equal or fall short of peak performance levels reported in 2005 and 2006, "with more balanced conditions -- characterized by healthy inventory levels and less urgency in the market -- expected to emerge,'' the company said in a release. On a national level, about 462,000 properties are expected to change hands next year, making 2007 the third best year on record. After four years of double-digit gains, average prices are forecast to rise a modest five per cent to $290,000 by the end of 2007, showing an increase from $275,000 one year ago. All but three of the markets surveyed (Kitchener-Waterloo, St. John's, and Charlottetown) are predicting a further increase in housing values, ranging from three to 10 per cent, in 2007, Re/Max said. "In Montreal, residential unit sales are forecast to match 2006's record performance of close to 50,000 units by year-end 2007," Sylvain Dansereau, executive vice-president of Re/Max Quebec, said in a written statement. "Housing values are also expected to climb, albeit at a slower pace than in previous years. The double-digit gains the market experienced in 2003 and 2004 have tapered to more moderate, single-digit appreciation. The year-end 2007 projection for average price in Montreal is an estimated $224,600." The highest price increases are projected in Calgary and Edmonton, with housing values rising 10 per cent to $385,000 and $265,900 respectively. "Both markets experienced substantial upward pressure in pricing during 2006 -- with Calgary climbing 40 per cent to $350,000 and Edmonton rising 25 per cent to $241,750,'' the company said. "Affordability is eroding, particularly in Western Canadian markets, but consumers are adjusting to new market realities.'' Though affordability is one of the most serious issues facing today's real estate consumer, said Elton Ash, regional executive vice president, Re/Max of Western Canada. "Buyers are simply getting more creative in their approach to homeownership, considering alternatives to single-detached homes such as semi and row housing, town houses, and condominium apartments," he said. "They're also looking at peripheral areas located close to the city centre that provide a better bang for the buck." Meanwhile, the highest percentage increase in 2007 unit sales is expected to occur in Saskatoon, where sales are forecast to climb seven per cent to 3,630 units. Edmonton is expected to place a strong second, with the number of homes sold climbing five per cent to a record 21,300 units. Regina and Hamilton-Burlington are tied for third place, both forecasting a two per cent increase in unit sales to 2,950 and 13,800 units respectively. Vancouver, Kelowna, Winnipeg, Ottawa, Montreal and Saint John are all projecting sales volume equal to last year's levels.
