Canada’s housing market continues to soar, as sales near record-breaking levels and home prices soar in markets throughout the country. In 2006, sales of existing homes in major markets reached the second highest annual level on record, according to statistics released by The Canadian Real Estate Association (CREA). Annual MLS® sales in Canada's major markets totaled 336,271 units in 2006, just 242 fewer than the record set in 2005.
On the local level, a number of Canada’s major markets set new annual sales records in 2006, including Calgary, Edmonton, Saskatoon, Winnipeg, Sudbury, and Ottawa. The year finished strongly, with an increase in national sales in the fourth quarter resulting largely from a surge in activity in Calgary and Toronto. New quarterly records for sales activity were set in Edmonton, Saskatoon, Sudbury and London.
There’s also good news for buyers. The inventory of homes for sale is good, with lots of options to choose from. In December, MLS® residential new listings in major markets broke all previous annual records nationally, posting an annual increase of 5.2%. Locally, the number of new listings for sale broke annual records in a number of major markets including Victoria, Calgary, and Toronto. However, although new listings caused the resale housing market to become more balanced, it remains a seller's market – especially in western Canada.
The good news for sellers is that prices have climbed to a new high, with the national average now approaching the $300,000 mark. CREA reports that the major market MLS® residential average price rose by a substantial 10.6% to reach $294,270 in 2006, a new annual record. This annual price increase was the strongest since 1989, says CREA. However, although prices have reached a record-breaking level, increases began to show signs of easing in the fourth quarter of 2006. For the coming year, we can expect to see further increases in price, but at a more moderate level, not at the double-digit level we saw in 2006.
The near record home sales activity across Canada's major markets in 2006 proves that consumers continue to view housing a solid investment. According to CREA, the market remains on firm ground as we start the New Year. However, national averages and major market trends are just a part of the picture. Market conditions and prices vary in different communities and even in different neighbourhoods. For a comprehensive view of what’s going on in your local real estate market, contact me at my website www.epsteinrealestate.com for more information.