CANADIAN IMMIGRATION NEWS

Living the good life in Canada: Real Estate gains predicted for 2008

Friday, 11 January 2008

If you're planning to immigrate to Canada and its strong economy was one of the reasons for your decision, then the latest forecast on Canada's real estate market will not disappoint. Real estate brokers are forecasting steady, yet moderate growth in the Canadian residential property market in 2008.

The prediction for 2008 is that house prices nationally will rise by 3.5% to an average of $317,288 next year, while the number of transactions is forecast to slip by 4% to just over half a million (still above the number of sales in any year before the record pace of 2007).

As Canada is in one of the longest housing market expansions in history, the housing market should continue to thrive on strong economic fundamentals including high employment, solid consumer confidence, modest inflation and a relatively low cost of borrowing.

Not surprisingly, these fundamentals are some of the major drawing cards for immigration to Canada. This expansion should result in balanced conditions, with lower levels of price appreciation, and fewer homes trading hands.

The markets, in which next year’s biggest percentage price increases will occur, are predicted to be Regina and Winnipeg. Meanwhile, Calgary and Edmonton are expected to experience more moderate gains in 2008. With the winter Olympics scheduled in 2010, Vancouver is forecast to remain powered by a strong B.C. economy.

The anticipation for Ontario and Quebec property markets are that they will maintain their relative strength and vibrancy throughout next year, weathering stormy financial markets and adjusting well to the high value of the Canadian dollar.

Most significantly, in Atlantic Canada, Canadian immigration is forecast to keep the housing market growing at a strong and steady pace, notably in Halifax.

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