Canada’s Housing Market to Stay Strong

Housing markets in major Canadian cities are set for more growth in the fourth quarter of 2009, according to a new Bricks and Mortar report by Re/Max, making this recession one of the shortest on record for real estate.

“In terms of its impact on the resale market, by historical standards, this recession was one of the mildest,” said Elton Ash, regional executive vice-president, Re/Max of Western Canada. “While there may still be some challenges down the road, the worst is definitely behind us in the housing industry.”

As observed in the spring and summer months, real estate has bounced back from the recession thanks to low interest rates, pent-up demand and improved affordability levels, the report said. It also listed the increases in sales in Canadian cities from January to August 2009, which was led by Vancouver (up 14 per cent), Victoria (up 7.4 per cent) and Edmonton (up 6.2 per cent).

Re/Max also noted that housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (up 18.1 per cent), Regina (up 6.4 per cent) and Halifax-Darmouth (up 3.5 per cent). 

“Prices are on the upswing and inventory levels are tightening, so the push toward homeownership is expected to continue throughout the fall and possibly into early 2010,” said Michael Polzer, executive vice-president of Re/Max Ontario-Atlantic Canada.