Mississauga, On (September 24, 2009) -- With the worst of the recession over, residential real estate markets in major Canadian centres are poised for growth in the final quarter of 2009, according to a report released today by RE/MAX
The RE/MAX Bricks and Mortar Report found the bounce back that began in early Spring has made this recession one of the shortest on record for real estate. Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well underway. Precentage increases in sales from January to August 2009 were let by Vancover, (up a substantial 14 percent to 23,158), Victoria (up 7.4 percent to 5,226), Edmonton (up 6.2 percent to 13.691), Regina (up five percent to 2,597), Ottawa (up 2.4 percent to 10,830) and Toronto (up 1.8 percent to 58,421). Housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (18.1 percent year to $203,584), Regina (6.4 percent to $244,088). Halifax-Dartmouth (3.5 percent to $239,633). Winnipeg (3.5 percent to $207,006). Ottawa (3.3 percent to $301,684), and Toronto (up 0.3 percent to $385,978). Nationally, average price hovers at $312,585, up 0.5 percent over one year ago.
"Markets are heating up across the country," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Purchasers are clearly taking advantage of affortable prices and rock bottom interst rates. Those who missed the boat in years past have found that sitting on the sidelines can be a costly move. 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."
The recovery of Canada's resale housing markets speaks to the tremedous value Canadians place on the importance of owning a home. The number of Canadians overall who own a home has increased since 1981 from 62.1 percent to 68.4 percent, with some markets posting even higher homeownership rates -- Calgary (74.1), St. John's (71.5), Regina (70.1), and Edmonton (69.2). Significant gains have also been made over the same period in markets such as Ottawa -- where homeownership levels rose from 51.4 percent to 66.7 percent-- and Toronto, where levels rose from 57.3 to 67.6 percent.
"The strength of the residential housing sector cross-country has taken many econnomists and housing analysts by surprise once again," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "In terms of its impact on the resale market, by historical standards, this recession was one of the mildest. The resillence of bricks and mortar has been demonstrated time and time again. While there may still be some challenges down the road, the worst is definitely behind us in the housing industry."
Over the past thirty years, the Canadian residential real estate market has experienced three major downturns - 1981, 1989, and 2008. While there have also been regional fluctuations throughout the years, return on investment over his period has been substantial, with Vancover, Victoria,Toronto, Regina and Ottawa leading the country in terms of price appreciation.
The overall stabililty of real estate as an investment has also played a role. Markets like Halifax-Dartmouth, Regina, Ottawa, Winnipeg and London have provided steady returns (especially in recent years), with minimal fluctuation.
Public sentiment can best be illustrated by a recent Angus Reid Omnibus Survey* that asked the question "In which do you feel more comfortable investing your money? The stock market or real estate." Out of 1,000 respondents from coast to coast, 77 percent chose real estate. The results of the RE/MAX Bricks and Mortar Report are clearly representative of this national dynamic at work.
RE/MAX is Canada's leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now its 36th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently-owned offices engage nealy 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commerical, referral, and assest management. For more information visit: www.remax.ca.
* The Angus Reid Omnibus Survey was conducted on Septemeber 15, 2009 and yields a margin of error of +3.1 percent, 19 times out of 20
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Linda Ragona
Re/max Real Estate Centre. inc
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