Dec. 4, 2009- The Canadian housing market has fared better than many others throughout the economic recession, and it is expected to yet again be a safe harbor in 2010 in most of the major Canadian cities, according to a recent report by RE/MAX.
"Canadians continue to demonstrate their commitment to homeownership - regardless of the economic climate," says Sylvain Dansereau, executive vice president, RE/MAX Quebec.
Sales and average housing prices are expected to recover and rise in almost all major centres across Canada by the end of this year. The largest rise is expected in Greater Vancouver, with an anticipated 45 per cent increase.
In Quebec City and Ottawa, the number of houses sold is expected to reach historic highs, according to the report. Sixty-five per cent of the major markets surveyed in the report are expected to reach new records as well.
While economic performance is expected to rise across Canada, residential real estate is expected to do just the same.
Eighty-three per cent of Canadian housing markets are expected to surpass their 2009 sales levels.
Furthermore, housing values in 91 per cent of Canadian centres are expected to rise, according to the report. For the remaining markets, sales and price levels are expected to remain stable to 2009 levels.
In 2010, 465,000 homes are expected to be exchanged between homeowners, an increase of seven per cent from 2009. By the end of 2010, this number is expected to jump another two per cent to 475,000 units.
The average price of homes in 2009 was $318,000, up five per cent from $303,594 in 2008. By the end of 2010, this number is expected to climb to $325,000, the highest recorded average house price in Canadian history.
"Some of the greatest percentage gains were reported in Western Canadian markets in 2009-demonstrating the higher the peak, the lower the valley," says Elton Ash, regional executive vice president, RE/MAX of Western Canada. "That said, the recession barely registered on year-over-year activity in most major centres. The economic fundamentals in place going forward ideally position the ten provinces, and the sector overall, for further growth."