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Canada Market Stabilizing

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The housing market in Canada is stabilizing after a very poor winter, according to real estate firm Royal LePage. In its most recent market survey, the Canadian firm revised its outlook for the year slightly upward. Average house prices are predicted to come in at C$297,500 for the year, a two percent decline for the year, while sales should come in at approximately 430,000 units, down one percent from a year ago.

"While seasonally weaker conditions are to be expected in the fall, the plucky Canadian real estate market is stabilizing and a healthy level of activity is forecast for the second half of 2009," Royal LePage president Phil Soper said.

Eastern Canadian cities will see a slight increase in prices, while out west there will be a decline. The western cities, such as Vancouver, Calgary and Edmonton, saw the largest increases in prices and sales volume over the past few years. Prices in Vancouver are expected to fall 5.7 percent to C$560,000, while Calgary will see a drop of 4.8 percent and Edmonton a fall of 4.6 percent.

Prices in Montreal should move up 2.1 percent to C$263,500, while Ottawa will also see an increase of 2.6 percent to C$298,000. The country’s largest real estate market, Toronto, is predicted to have a 1.5 percent fall to an average price of C$374,000.

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