"In many of Canada's regional markets, we saw house prices appreciate at a significantly faster rate than wages and salaries, and this trend cannot continue indefinitely," observed Phil Soper, president and chief executive, Royal LePage Real Estate Services. "We expect price gains to moderate considerably in the latter half of 2011, which should reduce the stress associated with purchasing a new home," Soper said. "Vancouver, and specifically certain neighbourhoods in the lower mainland of British Columbia, remains an anomaly, as investment from outside of the country continues to support higher price levels."
"While the global economy struggles to find its footing, here in Canada we are seeing indicators of a return to long-term norms," noted Soper. "There is an expectation of continuing improvement in employment levels across the country and accompanying strength in wages and salaries, which should provide support for the housing market. Looking ahead to 2012, signs are pointing to stability for Canadian home owners and new buyers. We believe we are past the period of peak house price appreciation."
Looking at some regional highlights, the Halifax market showed health and strength, and the forecast through the end of 2011 is a price gain of 3.3% over 2010. Driven by a surge in price for bungalows and two-storey houses, prices are expected to rise by 7.0% by the end of 2010 in Montreal. The market in Ottawa spread its’ gains fairly evenly across all housing types, and the end result is an expected rise of 5.0 % in 2011.
Toronto was one of the centres to see rapid price appreciation through the first few months of this year, and is now faced with a shortage of listings. In Winnipeg, a robust local economy is driving their real estate market up an expected 6.0 % for the year. The largest year-over-year gain was registered in Regina, and the forecast is that this will continue through 2010 to the tune of 12.4%.
Calgary is still picking up the pieces after a pre-recessionary price hike, but housing prices are still likely to increase by a respectable 3.8%. After a meteoric rise through the beginning of the year in Vancouver, prices are expected to settle at around a rise of 6.0%.