« 2006 real estate in review | Main | Montreal mayor wants more tax »

Realtors predict moderate gains

Alberta's largest cities will see relatively moderate gains in real estate prices in 2007, in contrast to the phenomenal growth the year before, according to local real estate boards.

The Calgary Real Estate Board released its yearly forecast Wednesday, predicting residential real estate sales would drop by four per cent in 2007, but prices would rise by seven per cent.

There are more real-estate listings in January than at the same time last year, 4,221 compared to 2,482. (CBC) President Ron Stanners called it a year of moderation, compared with the hyper-drive prices of 2006. The incredible gains in the first six months of 2006 won't be equalled in the next 30 to 50 years, he said.

"It was the perfect real estate storm," Stanners said. "There was a peak in baby boomers' kids buying, high migration into Calgary and a low inventory."

Already in January 2007 there are more listings than at the same time last year, 4,221 compared to 2,482. Stanners said sellers and buyers who were unsure of where the market would go at the end of 2006 have since regained confidence, meaning more homes are on the market.

"The market should be very, very steady," he said.

Better forecast for Edmonton

Edmonton real estate officials predict even more room to grow in that city.

Last week, the real estate board forecast that all residential real estate would go up in value by about two per cent a month in 2007, or 15 per cent for the year.

"Inventory levels will remain low throughout 2007 and the lack of supply and high demand will drive prices up," a release from the Edmonton Real Estate Board said.

"There is capacity to increase prices in this market, especially if we compare Edmonton prices to Vancouver or Toronto."

Housing prices in Alberta skyrocketed in 2006, with the cost of an average residential property jumping 49 per cent in Edmonton and 38 per cent in Calgary over the year.

The average price of a single-family home at the end of the year was $341,933 in Edmonton. In Calgary, the average for the same type of dwelling was $396,870.

January 20, 2007 in Canadian Market Forecast | Permalink

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c51e453ef00d835720a8969e2

Listed below are links to weblogs that reference Realtors predict moderate gains :

Comments

The comments to this entry are closed.