Langley Real Estate

A new report says fewer real-estate listings led to higher home values in the last decade, with prices increasing at an average of 6.82 per cent nationally.

The report released Tuesday by real estate agency ReMax said it was either a seller's market or conditions were balanced between sellers and buyers for most of the decade. The main exception was late 2008 and early 2009 when it was a buyer's market.

"Housing markets have been remarkably hearty over the past decade and the stage is set for a better than expected 2011," the report said.

The report examined the ratio between sales and new listings — a rough metric of gauging supply. Increased supply tends to lead to lower prices, and vice versa.

Regina saw the highest price increases in the country between January 2000 and December 2010. Average price increases there had an annually compounded rate of return of 9.56 per cent.

London-St. Thomas, Ont. saw the lowest increases at 4.82 per cent.

ReMax says the numbers show resiliency in the Canadian market in the wake of major events in the decade, such as the Sept. 11 attacks, the SARS health crisis in 2003, forest fires, ice storms and the 2008-9 recession.

"There’s no question that price growth has been solid over the past decade, but history tells us that exceptional growth supported by sound fundamentals is healthy," the report said.

"Concern is only raised when the underpinnings are insufficient to justify the trajectory. By all accounts, Canada’s real estate market measures up to conventional wisdom and the faith in homeownership has not been misplaced."