Tight inventory levels enabled the last decade to be one of the healthiest for Canadian real estate, which will help maintain stability within the major centres for 2011, according to Re/Max.
The Re/Max Housing Barometer Report found a strong seller’s market allowed for significant increases in housing values, measuring monthly sales-to-new listings ratios in 18 major centres from January 2000 to December 2010. In the past decade, average prices rose by an annual compounded return rate of 4.82 per cent in London-St. Thomas to a high of 9.56 per cent in Regina. The national average was 6.82 per cent.
“While population growth, pent-up demand and a strong economy also contributed to the run up in activity, inventory played a major role in price growth,” Re/Max Western Canada regional executive vice-president Elton Ash said in a press release. “The recent recession was case in point. Supply remained largely in check, keeping prices on the upswing despite softer demand. That is expected to continue, given an improved global economic picture, lower unemployment rates and rising consumer confidence—all of which have buoyed home buying activity since November.”
Western Canada experienced the highest gains as follows:
- Regina, 9.56 per cent
- Edmonton, 9.25 per cent
- Saskatoon, 9.2 per cent
- Winnipeg, 9.01 per cent
- Kelowna, 8.42 per cent
- Greater Vancouver, 7.8 per cent
- Calgary, 7.7 per cent
- Victoria, 7.5 per cent