NEWS

The average sale price of a Calgary existing home is forecast to rise by five per cent next year after falling by an estimated five per cent in 2009, according to a report released today by Re/Max.

The real estate firm's Housing Market Outlook for 2010 said the MLS sale price this year for Calgary, which includes all residential properties, is estimated to be $385,000 but it is forecast to rise to $403,000 next year.

Re/Max is estimating MLS sales to hit 26,000 this year in Calgary for a 12 per cent gain from 2008 and it is expecting sales to continue to rise by another eight per cent in 2010 to 28,000.

At the national level, the company says the average sale price across Canada will be up five per cent this year to $318,000 and increase by a further two per cent in 2010 to $325,000.

MLS sales in Canada, it said, will rise by seven per cent in 2009 to 465,000 units and increase by a further two per cent in 2010 to 475,000 units.

The Re/Max Housing Market Outlook for 2010 examined residential real estate trends in 23 markets. The report found that sales are forecast to recover in almost all major centres by year-end 2009, led by an anticipated 45 per cent increase in Greater Vancouver. Two markets --Ottawa and Quebec City -- are expected to hit historic highs in the number of homes sold. Average price should post new records in 65 per cent of markets surveyed this year. As economic performance ramps up across the country, so too will residential real estate. Eighty-three per cent of markets (19/23) are expecting sales to increase over 2009 levels while housing values are forecast to escalate in 91 per cent (21/23) of Canadian centres in 2010. The remaining markets will match 2009 levels.

"A number of factors will help prop up activity going forward, including improved economic conditions, continued low interest rates, rising consumer confidence and solid capital spending which will buoy employment," said Re/Max. "Inventory will once again assume the wildcard role, with any decline placing upward pressure on prices. Multiple offers will remain the exception in most markets, more commonplace on quality entry-level product which remains in tight supply."

Call Lisa Au for more information
Invis Mortgage Associate
P: (403) 681-0217
F: (403) 277-8079