Ashley Ford
Province
Greater Vancouver’s housing market won’t lose much steam next year and should mirror this year’s strong performance, Re/Max real-estate company predicted yesterday in its latest national survey.
Prices will climb by eight per cent next year to an average $543,240 from this year, but that reflects a slowing of the 18-per-cent rise in the average price experienced this year, the Re/Max report said.
It also said that increasing inventory levels will help ease the upward pressure on Greater Vancouver house prices next year.
The vast majority of new listings coming to market are condominiums and townhomes while the shortage of single-detached homes is expected to continue.
Affordability has become a serious issue in the city with many first-time buyers looking to the suburbs for home ownership.
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 prices are expected to climb five per cent to $290,000 by year-end 2007, up from $275,000 a 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, Re/Max said.
The highest price increases are projected in 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,” the company said.
“Affordability is eroding, particularly in Western Canadian markets, but consumers are adjusting to new market realities.”
© The Vancouver Province 2006