Dwights Real Estate Help Site
  Re/Max Realty Specialists Inc., Brokerage
Independently Owned and Operated
   
 
dwight@remaxspec.on.ca
905-330-2688
 
 
 
 
 
 
Resources
 
Home prices slowing

House price appreciation across Canada to slow as more listings come on stream in 2007, says RE/MAX

MISSISSAUGA, ON, Oct. 18 /CNW/ - Home buyers across the country will breathe a sigh of relief in 2007, thanks to a nationwide influx of new listings that is expected to slow price appreciation in major Canadian centres, says a report released today by RE/MAX.

The RE/MAX Housing Market Outlook 2007 found that while the number of homes listed for sale is set to climb, demand will remain strong in the 17 markets surveyed, including Vancouver, Victoria, Kelowna, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Kitchener-Waterloo, Hamilton-Burlington, Toronto, Ottawa, Montreal, Halifax, Charlottetown, Saint John and St. John's. With few exceptions, projections for sales volume in 2007 match or fall short of peak performance reported in 2005 and 2006, with more balanced conditions - characterized by healthy inventory levels and less urgency in the market - expected to emerge.

Nationally, 462,000 properties are forecast to change hands next year, making 2007 the third best year on record. After four years of double-digit gains, average price is predicted to climb a modest five per cent to $290,000 by year-end 2007, up from $275,000 one year ago. All but three of the markets surveyed (Kitchener-Waterloo, St. John's, and Charlottetown) are predicting further escalation in housing values, ranging from three to 10 per cent, in 2007.

"Strong economic fundamentals continue to fuel healthy residential real estate activity in markets across the country, despite what is happening south of the border," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "We are heading into another year of economic growth. Consumer confidence levels are strong. Unemployment levels are forecast to remain low. Oil prices are expected to hover at $60 per barrel. The Canadian dollar continues to climb. The Bank of Canada is holding the line on interest rate hikes. It's all positive."

"Affordability is one of the more serious issues facing today's real estate consumer, yet purchasers remain steadfast," says 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. They're also looking at peripheral areas located close to the city centre that provide a better bang for the buck. New mortgage products that extend the traditional 25-year mortgage amortization period to 30 and 35-years may also help them realize their goal of owning a home sooner rather than later."

In 2007, the highest percentage increase in 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 projecting a two per cent increase in unit sales to 2,950 and 13,800 units respectively. Vancouver, Kelowna, Winnipeg, Ottawa, and Saint John are all projecting sales volume on par with last year's levels

 
 


  © DWIGHT TAYLOR of Re/Max Realty Specialists Inc., Brokerage
Independently Owned and Operated
 
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of service provided by the real estate professionals who are members of CREA. Used under license
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license