Canadian Mortgage News

January 2007 National News Archive

MLS® Home Sales Activity Forecast To Stay Strong

Prices to continue to rise

OTTAWA, Ontario, February 19, 2007 — National MLS® home sales activity will remain high this year and in 2008, according to The Canadian Real Estate Association.

National sales activity is forecast to ease slightly but remain above 450,000, which is near the strongest levels on record. Annual activity is forecast to rise this year in Saskatchewan and Manitoba and inch lower in other provinces

The national MLS® residential average price is forecast to rise modestly over the next two years. Resale housing markets will become more balanced in all provinces, but will remain tighter in Western provinces where annual price increases will be the largest.

"Mortgage rates are low and will stay that way," said CREA Chief Economist Gregory Klump. "Employment is high and will continue to rise. Consumer sentiment is upbeat. Incomes are rising. The combination of those factors will keep the housing market on a strong footing over the next couple of years."

"Annual price increases will generally be smaller than last year in all provinces," added Klump. "Saskatchewan is forecast to buck the trend by posting a bigger annual average price increase this year because sales activity has outstripped growth in new listings, which has caused the resale housing market to tighten there."

"Your REALTOR® is the best person to look to for help in marketing the features of your property, and for accurate pricing within your local real estate market," said CREA President Alan Tennant, FRI. "It is very important to look to your REALTOR® throughout the listing period for up-to-date and sound advice."

"A home is one of your greatest financial assets, so using the professional services provided by a REALTOR® provides both buyers and sellers with the expertise and information they need to make the right decisions," added Tennant.

For more information:
Gregory Klump
Chief Economist
613-237-7111
gklump@crea.ca

News source: The Canadian Real Estate Association (CREA)