Housing:  Home sales far exceeded expectations

'Astounding momentum' in housing markets'

Anne Howland and Vito Pilieci, The Ottawa Citizen, July 6, 2007

The resale housing market in Ottawa should hold steady while sales in other parts of Canada are poised to boom for the remainder of 2007, according to report released yesterday.

The Royal LePage Real Estate Services report predicts the average price of a home in Ottawa will increase 6.2 per cent this year to $273,445.

The number of resale homes sold in Ottawa will increase by five per cent in 2007 to 14,705 units, the report suggests. 

The real estate company calls Ottawa the "most stable housing market" in the country.

"Ottawa has remained solid and stable for the past 50 years with only moderate fluctuations in housing prices and activity," said Pierre de Varennes, a broker and owner of Royal LePage Performance Realty.

"All indicators point to this healthy housing market continuing to year's end."

Other Canadian markets are showing "astounding momentum" for the remainder of 2007, according to the report.

The national average house price is expected to increase by 9.5 per cent, passing the $300,000 mark for the first time, to $303,300.

All regions are expected to enjoy the same growth conditions with average house prices hitting double digit gains in Edmonton, Calgary, Winnipeg and Regina, according to the report.

"The most profound story in Canadian real estate today is the extraordinary interest that people across our country continue to have in buying and selling homes," said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services.

"The sheer number of homes trading hands this year has far exceeded consensus expectation.  This market continues to show strength as we move into the second half of the year."

Record numbers of house sales in Regina and Saskatoon - linked to in-migration of Saskatchewanians returning from expensive Alberta living - is cited as pushing Saskatchewan into "the regional players exhibiting extreme home sales activity and searing house price increases."

In Alberta, the soaring prices and activity that have characterized Calgary and Edmonton for a year-and-a hlaf have eased with the market expected to return to more manageable conditions in the next year.

In Central Canada, healthy regional economies and job markets, and population growth will combine with a recognition that real estate is a sound investment to continue to bolster demand for housing, the report noted.

In Canada's largest city, the threat of a city-proposed increase in land transfer taxes for the area could also prompt buyer sto enter the Toronto market.

The effects of a vibrant oil sector in parts of Atlantic Canada are expected to create an abundance of jobs and maintain the buyoyancy of the eastern makret, balancing a significant loss of trades people who have flocked to Alberta, the report said, with St. John's, N.L., Saint John, N.B., and Fredericton sharing the benefits.

"During the first half of the year, strong economic fundamentls fuelled consumer confidence and reasonable affordablility drove housing demand across the country.  In most provinces, inventory levels wer up slightly year-over-year, helping to balance the national makret, "said Mr. Soper.

According to the report, the highest average price increase occurred in detached bungalows, up 15.4 per cent to $338,738, and standard tow-storey properties, up 13.2 per cent to $399,469.  Standard condominiums increased 15.1 per cent to $238.784 year-over-year.

OTTAWA TRENDS

Here's how the price of a "standard" two-storey house (1,500 square feet, three bedrooms, garage) has changed in six Ottawa regions traced by Royal LePage Real Estate Services during the first half of 2007, as compared to a year earlier:

SOUTH END:  Up 6.1 per cent to $261,000

KANATA:  Up 7.3 per cent to $280,000

WESTERN OTTAWA: Up 7.9 per cent to $329,000

CENTRAL OTTAWA:  Up 5.0 per cent to $418,000

EASTERN OTTAWA:  Up 5.4 per cent to $253,000

ORLÉANS:  Up 6.6 per cent to $257,000