Tighter inventory levels helped to make the last decade one of the healthiest periods on record for Canadian real estate, insulating markets in major centres from the peaks and valleys characteristic of past decades, according to a report released today by RE/MAX.
The across the country from January 2000 to December 2010. The report found strong seller's/balanced conditions prevailed for much of the time frame, prompting significant gains in housing values. The lone exception was when the market dipped into buyer's territory during the latter half of 2008 and early 2009. However, fewer listings served to offset diminished demand and provided greater stability. Average price increases from 2000 to 2010 ranged from an annually compounded rate of return of 4.82 per cent in London-St. Thomas to a high of 9.56 per cent in Regina. The national average was 6.82 per cent. By far the tightest market in the nation was Winnipeg, where seller's ruled the roost for 85 per cent of the decade, followed by Hamilton-Burlington (67 per cent), Regina (63.6 per cent), Kitchener-Waterloo (59.8 per cent) and Edmonton (57.5 per cent).
"While population growth, pent-up demand, and a strong economy also contributed to the run up in activity, inventory played a major role in price growth," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "The recent recession was case in point. Supply remained largely in check, keeping prices on the upswing despite softer demand. That is expected to continue, given an improved global economic picture, lower unemployment rates and rising consumer confidence-all of which have buoyed home buying activity since November. While sales figures are expected to be slightly off 2010's heated pace, housing values are forecast to continue to climb in Canadian real estate markets in 2011-with most a direct result of lower listing levels."
A number of city centres are already reporting stronger than usual housing activity out of the gate, with firsttime buyers comprising the vast majority of purchasers and move-up buyers in close pursuit. Demand and supply are on relatively even keel at present in most areas, but the traditionally busy spring season is expected to keep the market at a perfect equilibrium in the days and months ahead. However, there may be some exceptions to the rule. The country's largest markets-Greater Toronto, Greater Montreal, and Greater Vancouver-are expected to head into the second quarter with fewer listings overall. Two centres- Newfoundland & Labrador and Kelowna-are still firmly entrenched in buyer's markets.
To read the FULL REPORT and view housing statistics visit: http://www.remax-western.ca/news/%E2%80%98wild-card%E2%80%99-props-canadian-housing-markets-over-past-decade-says-remax
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