MONTREAL, 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.
"In Montréal, residential unit sales are forecast to match 2006's record
performance of close to 50,000 units by year-end 2007," says Sylvain
Dansereau, Executive Vice President, RE/MAX Québec. "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 Montréal is an estimated $224,600."
Strong economic fundamentals continue to fuel healthy residential real
estate activity in markets across the country, despite what is happening south
of the border, explains 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."
Leading the country in terms of percentage increase in average price in
2007 are 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. Affordability is
eroding, particularly in Western Canadian markets, but consumers are adjusting
to new market realities.
"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, Montréal and Saint John are all projecting sales
volume on par with last year's levels.
RE/MAX is Canada's leading real estate organization with over 16,690
sales associates situated throughout its more than 625 independently owned and
operated offices across the country. The RE/MAX franchise network, now in its
407 month of consecutive growth, is a global real estate system operating in
over 63 countries. More than 6,545 independently owned offices engage 120,400
member sales associates who lead the industry in professional designations,
experience and production while providing real estate services in residential,
commercial, referral, relocation and asset management. For more information,
visit: www.remax.ca
To view the report, please visit:
http://files.newswire.ca/40/REMAX_Forecast.pdf
<<
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Residential MLS Average Price
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Market 2006 Estimate % Change 2007 Forecast % Change
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Vancouver $ 503,000 18.0% $543,240 8.0%
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Victoria $ 420,000 10.0% $440,000 5.0%
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Kelowna(xx) $ 422,900 19.0% $460,965 9.0%
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Calgary $ 350,000 40.0% $385,000 10.0%
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Edmonton $ 241,750 25.0% $265,900 10.0%
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Saskatoon $ 158,000 9.0% $164,000 4.0%
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Regina $ 134,000 8.0% $140,700 5.0%
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Winnipeg(xxx) $ 153,000 14.0% $160,000 5.0%
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Toronto $ 353,000 5.0% $371,000 5.0%
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Hamilton-Burlington $ 248,000 8.0% $255,400 3.0%
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Ottawa $ 258,000 4.0% $268,300 4.0%
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Kitchener-Waterloo $ 240,000 9.0% $240,000 N/C
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Montreal $ 213,900 5.0% $224,600 5.0%
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Halifax-Dartmouth $ 212,000 12.0% $226,800 7.0%
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St. John's (Newfoundland
& Labrador) $ 141,160 n/c $141,160 N/C
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Saint John $ 126,000 5.0% $130,000 3.0%
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Charlottetown (PEI) $ 125,000 7.0% $125,000 N/C
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National $ 275,000 10.0% $290,000 5.0%
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Residential MLS Unit Sales
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Market 2006 Estimate % Change 2007 Forecast % Change
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Vancouver 40,000 -5.0% 40,000 N/C
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Victoria 8,000 n/c 7,400 -8.0%
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Kelowna(xx) 9,900 -5.0% 9,900 N/C
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Calgary 32,500 3.0% 30,000 -8.0%
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Edmonton 20,300 9.0% 21,300 5.0%
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Saskatoon 3,400 5.0% 3,630 7.0%
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Regina 2,900 6.0% 2,950 2.0%
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Winnipeg(xxx) 13,000 8.0% 13,000 N/C
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Toronto 80,000 -5.0% 78,000 -3.0%
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Hamilton-Burlington 13,565 n/c 13,800 2.0%
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Ottawa 14,000 5.0% 14,000 N/C
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Kitchener - Waterloo 58,000 -6.0% 5,500 -5.0%
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Montreal 49,500 n/c 49,506 N/C
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Halifax 6,300 -2.0% 6,000 -5.0%
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St. John's (Newfoundland
& Labrador) 3,300 3.0% 3,000 -9.0%
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Saint John 1,850 -3.0% 1,850 N/C
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Charlottetown (PEI) 1,200 -17.0% 1,100 -8.0%
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National 483,250 n/c 462,000 -4.0%
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(*) Source: CREA, TREB, OMREB, RE/MAX
(xx) Central Okanagan (xxx) WREB Total MLS Sales
>>
For further information: Marc Lacasse, RE/MAX Québec, (450) 668-7743;
Eva Blay, Point Blank Communications, (416) 781-3911
The Schacter Team - Langley Real Estate