Slow and steady growth forecast for residential real estate in major Canadian markets in 2008, says RE/MAX



    Canadian home sales to top 500,000 in 2007

    KELOWNA, BC, Oct. 17 /CNW/ - After posting extraordinary gains in 2007,
housing market performance will moderate in most major Canadian centres in
2008, according to a report released today by RE/MAX.
    The RE/MAX Housing Market Outlook 2008 examined residential real estate
trends in 18 markets across the country. The report found that while economic
prospects will continue to improve next year, few major markets are expected
to exceed record sales levels set in 2007. Winnipeg, Hamilton-Burlington,
Kitchener-Waterloo, London-St. Thomas, Ottawa, Sudbury, Saint John,
Halifax-Dartmouth, and St. John's are all predicted to buck the trend in 2008,
with appreciation ranging from one to seven per cent. Average price is
forecast to increase in 78 per cent of markets surveyed next year, with the
lowest price increase expected in Edmonton and the highest in St. John's.
    Nationally, the number of homes sold is expected to break through the
half-million threshold in 2007, climbing 13 per cent to an estimated
545,400 units, up from 483,770 units one year ago. Average price is projected
to appreciate nine per cent to $303,000, up about $25,000 over 2006 levels. In
2008, home sales are expected to retreat to 500,000 units while Canadian
housing values are forecast to continue their ascent, rising six per cent to
$321,000.
    "Clearly, economic prosperity has translated into increased housing sales
and upward pressure on prices across the board," says Elton Ash, Regional
Executive Vice President, RE/MAX of Western Canada. "The country's economic
engine fired on all cylinders throughout the year, despite dire conditions
south of the border. As in 2007, inventory will be the major wildcard next
year - the ultimate variable most expected to influence housing market
conditions and performance. A return to tight market conditions could mean all
bets are off as buyers are forced to compete, creating increased market
pressure."
    Major market frontrunners for price appreciation in 2008 include
St. John's (12 per cent), Regina and Kelowna - Central Okanagan (nine per
cent), Hamilton-Burlington and Saint John (eight per cent) and Greater
Vancouver (seven per cent). Leading the country in sales growth next year will
be Kitchener-Waterloo (seven per cent), followed by Hamilton-Burlington,
London-St. Thomas, Sudbury and Halifax-Dartmouth, each forecasting a five per
cent gain.
    Higher mortgage rates and increased inventory levels failed to
materialize in most major centres, making 2007 a record year for real estate
activity in Canada. By year-end, housing values across the country are
expected to shatter existing records. Serious double-digit increases in
average price are forecasted for Saskatoon (49), Edmonton (31.5), Regina (21),
Calgary (20), Sudbury (20), Kelowna (19.5) Saint John (17), St. John's (12),
and Greater Vancouver (10).
    Saskatchewan dominated real estate news in 2007, reporting some of the
highest percentage increases in unit sales. The number of homes sold in Regina
by year-end is expected to top 35 per cent, bringing sales to an estimated
4,000 units. Neighbouring Saskatoon is forecast to climb 28 per cent to
4,400 units in 2007. Other centres expected to post double-digit gains in
activity include Saint John (19 per cent) Kitchener-Waterloo (13 per cent),
Halifax-Dartmouth (12 per cent), St. John's (11 per cent), and Toronto (10 per
cent).
    "Western markets were first out of the gate in 2007, but those in the
East followed suit," says Michael Polzler, Executive Vice President and
Regional Director, RE/MAX Ontario-Atlantic Canada. "By year-end, some of the
most impressive gains in home sales will be realized in Ontario and Atlantic
Canada. Solid economic fundamentals, including billions of dollars in capital
projects, a positive unemployment outlook, and solid consumer confidence
levels will propel markets forward. A slow and steady growth trajectory, minus
the peaks and valleys experienced in 2007, is forecast for next year."
    To view the complete RE/MAX Housing Market Outlook 2008 Report, please
click here: http://files.newswire.ca/348/REMAX_WO55712.pdf

    RE/MAX is Canada's leading real estate organization with over
17,500 sales associates situated throughout its more than 640 independently
owned and operated offices across the country. The RE/MAX franchise network,
now in its 34th year of consecutive growth, is a global real estate system
operating in over 65 countries. More than 7,000 independently owned offices
engage 120,000 member sales associates who lead the industry in professional
designations, experience and production while providing real estate services
in residential, commercial, referral and asset management. For more
information, visit: www.remax.ca.


    
    -------------------------------------------------------------------------
    Residential Average Price by Market
    -------------------------------------------------------------------------
    2004-2008
    -------------------------------------------------------------------------
    Market          2004      2005      2006    2007(*)    %   2008(xx)    %
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    British
     Columbia
    -------------------------------------------------------------------------
    Greater
     Vancouver  $373,877  $425,745  $509,876  $560,000    10  $600,000     7
    -------------------------------------------------------------------------
    Victoria    $325,412  $380,897  $427,154  $462,000     8  $485,000     5
    -------------------------------------------------------------------------
    Kelowna(xxx)
     (Central
     Okanagan)  $217,625  $261,466  $313,923  $375,300  19.5  $408,750     9
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Alberta
    -------------------------------------------------------------------------
    Edmonton    $179,610  $193,934  $250,915  $330,000  31.5  $335,000   1.5
    -------------------------------------------------------------------------
    Calgary     $222,860  $250,832  $346,675  $415,000    20  $415,000   n/c
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Saskatchewan
    -------------------------------------------------------------------------
    Regina      $111,869  $123,600  $131,851  $160,000    21  $175,000     9
    -------------------------------------------------------------------------
    Saskatoon   $132,549  $144,787  $160,577  $240,000    49  $250,000     4
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Manitoba
    -------------------------------------------------------------------------
    Winnipeg
     (xxx)      $117,570  $134,028  $151,983  $169,400    11  $180,000     6
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Ontario
    -------------------------------------------------------------------------
    Hamilton-
     Burlington $215,922  $229,753  $248,754  $268,000     8  $289,440     8
    -------------------------------------------------------------------------
    Kitchener-
     Waterloo   $205,639  $220,511  $237,963  $250,000     5  $262,500     5
    -------------------------------------------------------------------------
    London-
     St. Thomas $167,334  $178,910  $190,521  $202,000     6  $202,000   n/c
    -------------------------------------------------------------------------
    Ottawa      $236,152  $248,358  $257,481  $272,000     6  $288,320     6
    -------------------------------------------------------------------------
    Sudbury     $122,866  $134,440  $150,341  $180,000    20  $180,000   n/c
    -------------------------------------------------------------------------
    Greater
     Toronto    $315,266  $335,907  $351,941  $372,000     6  $390,600     5
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    New Brunswick
    -------------------------------------------------------------------------
    Saint John  $116,836  $119,718  $128,202  $150,000    17  $162,000     8
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Nova Scotia
    -------------------------------------------------------------------------
    Halifax-
     Dartmouth  $175,132  $188,484  $203,178  $216,000     6  $226,000     5
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    PEI
    -------------------------------------------------------------------------
    Charlotte-
     town       $110,815  $117,238  $125,430  $125,430   n/c  $125,430   n/c
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Newfoundland
     and Labrador
    -------------------------------------------------------------------------
    St. John's  $132,993  $141,167  $139,542  $156,000    12  $174,700    12
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    National    $226,337  $249,201  $276,959  $303,000     9  $321,000     6
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    (*) Estimate (xx) Forecast (xxx) Total MLS
    -------------------------------------------------------------------------
    Source: CREA, OMREB, WREB, TREB, RE/MAX
    -------------------------------------------------------------------------



    Residential Unit Sales by Market
    -------------------------------------------------------------------------
    2004-2008
    -------------------------------------------------------------------------
    Market          2004      2005      2006    2007(*)    %   2008(xx)    %
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    British
     Columbia
    -------------------------------------------------------------------------
    Greater
     Vancouver
     Area         37,972    42,222    36,479    37,680     3    37,700   n/c
    -------------------------------------------------------------------------
    Victoria       7,685     7,970     7,500     8,190     9     7,500    -9
    -------------------------------------------------------------------------
    Kelowna(xxx)
     (Central
     Okanagan)     9,301    10,350     9,392    10,100   7.5     9,595    -5
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Alberta
    -------------------------------------------------------------------------
    Edmonton      17,652    18,634    21,984    20,350  -7.5    20,350   n/c
    -------------------------------------------------------------------------
    Calgary       26,511    31,569    33,027    33,580     2    31,500    -6
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Saskatchewan
    -------------------------------------------------------------------------
    Regina         2,785     2,730     2,953     4,000    35     3,600   -10
    -------------------------------------------------------------------------
    Saskatoon      2,999     3,246     3,430     4,400    28     4,400   n/c
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Manitoba
    -------------------------------------------------------------------------
    Winnipeg
     (xxx)        11,447    12,087    12,304    12,940     5    13,070     1
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Ontario
    -------------------------------------------------------------------------
    Hamilton-
     Burlington   13,176    13,565    13,059    13,760     5    14,450     5
    -------------------------------------------------------------------------
    Kitchener-
     Waterloo      5,931     6,147     6,115     6,910    13     7,400     7
    -------------------------------------------------------------------------
    London-
     St. Thomas    9,238     9,133     9,234     9,780     6    10,350     6
    -------------------------------------------------------------------------
    Ottawa        13,457    13,300    14,003    14,750     5    15,340     4
    -------------------------------------------------------------------------
    Sudbury        2,500     2,593     2,615     2,770     6     2,910     5
    -------------------------------------------------------------------------
    Greater
     Toronto
     Area         83,501    84,145    83,084    91,370    10    91,370   n/c
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    New Brunswick
    -------------------------------------------------------------------------
    Saint John     1,612     1,901     1,852     2,210    19     2,300     4
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Nova Scotia
    -------------------------------------------------------------------------
    Halifax-
     Dartmouth     5,516     6,698     6,462     7,215    12     7,580     5
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    PEI
    -------------------------------------------------------------------------
    Charlotte-
     town          1,500     1,449     1,492     1,620   8.5     1,620   n/c
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Newfoundland
     and Labrador
    -------------------------------------------------------------------------
    St. John's     3,203     3,211     3,537     3,930    11     4,000     2
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    NATIONAL     460,790   483,789   483,770   545,400    13   500,000    -8
    -------------------------------------------------------------------------
    (*) Estimate (xx) Forecast (xxx) Total MLS
    -------------------------------------------------------------------------
    Source: CREA, OMREB, TREB, WREB, RE/MAX
    -------------------------------------------------------------------------
    





For further information:

For further information: Marie Selby, RE/MAX of Western Canada, (250)
860-3628; Eva Blay, Charlene McAdam, Kim Kofman, Point Blank Communications,
(416) 781-3911

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