After shattering all existing records from coast-to-coast in 2005, housing values are expected to moderate in most major centres in 2006. More balanced conditions should emerge in the year ahead, characterized by healthy inventory levels and less urgency in the marketplace.
This doesn’t hold true, though, for Western Canada, where, according to the RE/MAX Housing Market Outlook 2006, average price increases are expected to be in the area of 10 per cent next year. Housing markets are projected to be especially hot in Vancouver and Calgary, where housing affordability has certainly been a major concern.
Average prices here have experienced strong upward momentum in recent years and will continue to follow this trend due to very tight inventory levels, strong economic growth, low unemployment and interest rates, and continued population influx. Consumer confidence levels are very high, and even rising interest rates couldn’t put the brakes on a record-high real estate sales, instead even bolstering home-buying activity.
Across the country, strong economic fundamentals will continue to contribute to healthy residential real estate activity in 2006. British Columbia and Alberta, in particular, are expected to benefit from thriving oil and gas industries, as well as immigration, which is forecasted to play even a greater role in higher than average housing demand. In 2006, Canada is opening its door to as many as 255,000 new immigrants and that figure is most likely to be ramped up in the future.
Overall, real estate continues to be one of the most valuable long-term investment vehicles, and since more and more families recognize that investing in a home is the most sound decision you can ever make, Canadian housing market continues to grow stronger than ever.
RE/MAX Advantage Realty