Canada’s average house price has retreated from 2007’s record high, falling 3% to $300,000 this year and to $293,000 next year as demand falls in the current economy, according to estimates released today by the ReMax realtor company.
Nationally, about 440,000 homes are expected to change hands in 2008, representing a 15% decline in transactions compared with last year. Next year is also expected to see about 440,000 transactions, said ReMax in its annual Canadian real-estate analysis.
However, the national figures smooth over a big discrepancy between the performance of regional or local real-estate markets.
Housing values are expected to be up the most this year in Regina (39%), Saskatoon (24%), Winnipeg (22%), St. John’s (21%), Saint John (19.5%), Sudbury (14%), and Montreal (12%).
ReMax said other major cities including Vancouver, Victoria and the Greater Toronto Area are also expected to show smaller increases this year, while Calgary and Edmonton housing prices are both expected to be down 1%.
In 2009, major markets are expected to be evenly split in terms of housing performance, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels.
ReMax executive Michael Polzler said predictions for 2009 are difficult given the volatility in financial markets and the threat of recession. The situation is not expected to be remedied until consumer confidence is restored, he added.
The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb 3% in 2009.
Housing values are expected to hold the line in 2009, with St. John’s, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.
