Record housing market in 2007
- 16.01.2008
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Canadian real estate market tops $100 billion
The Canadian housing market soared to record levels in 2007, according to a report released Tuesday by the Canadian Real Estate Association (CREA), with new listings, average price and dollar volume in Canada’s major markets all reaching their highest annual levels ever.
Existing home sales hit $118.3 billion for the year, the first time the figure has ever topped the $100 billion mark, said CREA president Ann Bosley. The sales total represented a 19.6% increase from the previous record set a year earlier.
“The statistics show just how dynamic the Canadian housing market was in 2007 in virtually all parts of the country,” said Bosley, despite concerns that the Canadian market would suffer the same kind of downturn as that being experienced in the U.S.
The average price for a resale home sold through the multiple listing service (MLS) rose 10.8% year-over-year in 2007 “ the largest annual increase in 18 years.
In the fourth quarter of 2007, the major market MLS residential average price rose 11.6% year-over-year to $333,105 “ also a new record. On a monthly basis, average prices rose 13.1% year-over-year in December “ the largest gain in more than three years.
“Resale housing demand remained high throughout 2007 due to job and income growth, the continuation of attractive financing, and upbeat consumer confidence,” said CREA Chief Economist Gregory Klump. “Additional interest rate cuts this year will keep resale housing market activity on a strong footing, and prices will continue to rise but at a slower pace,” said Klump, with CREA forecasts showing that sales will reach their second-highest levels on record this year.
Home sales set new annual records in a number of major markets including Regina, Saskatoon, Winnipeg, Toronto, London-St. Thomas, Hamilton-Burlington & District, Kitchener-Waterloo, Ottawa, Montreal, Quebec City, Saint John, Halifax, and Newfoundland and Labrador.
Seasonally adjusted sales activity in the fourth quarter edged down 1.6% compared to the previous quarter to 88,292 units. The quarter-over-quarter decline in activity during the fourth quarter resulted from fewer sales in Calgary, Vancouver, Ottawa and Montreal, which more than offset a rise in activity in Edmonton and Newfoundland and Labrador.
