Housing prices will rise 3 per cent in 2011, Re/Max predicts

The Canadian Press

MISSISSAUGA — Real Estate agency Re/Max says all Canadian cities will see housing prices rise in 2011, with the average price expected to go up three per cent to $350,000 by the end of next year.

Meanwhile, Re/Max predicts a five per cent fall in new and resale home sales to 441,000 units this year compared with last, with around the same number expected to sell in 2011.

Lower inventories in several markets are boosting prices, but low interest rates and improved consumer confidence will lead to improved sales in every province moving forward.

Re/Max said there will be an increase in home values in nearly every city next year, with St. John’s, N.L., leading the way with an expected eight per cent increase in the average price.

Home values in Greater Vancouver, Kelowna, B.C., Regina, Saskatoon, London, Ont., Ottawa, Sudbury and Greater Montreal are all predicted to climb five per cent.

Re/Max says the average price in Kitchener and Waterloo will end 2011 at $305,000, an increase of 1.7 per cent from the $300,000 average it is forecasting for the end of this year.

The company says the Greater Vancouver area will see the largest jump in sales next year, at 10 per cent, followed by Victoria at eight per cent, and Kelowna, B.C., at six per cent. Windsor home sales will jump five per cent.

It says house sales in Kitchener and Waterloo will increase 0.8 per cent to 6,350.

The Greater Toronto Area will see more stability in 2011 as the economy improves, with average home prices going up two per cent to an average of $440,000, it said.

Meanwhile, condominiums are expected to get a bigger share of the market in 2011, and first-time buyers will be most active, looking for affordable homes under $500,000.

“The relentless drive in the market reminiscent of years past will be gone and, instead, we can expect to see more normal, balanced market conditions, with buyers maintaining a slight edge,” Elton Ash, regional executive vice-president, Re/Max of Western Canada, said in a statement.