Canadian real estate “defies logic” in 2011 with growth: RE/MAX

Canada’s real estate market surpassed expectations in 2011, despite global economic concerns, according to a year-end report by RE/MAX.

The Re/Max Housing Market Outlook 2012 report said unit sales nationally will be up 3% this year, and the average price of $363,000 will be a 7% gain from the end of last year.

“European debt crisis? Economic jitters worldwide? Someone forgot to tell the Canadian housing market,” said Christine Martysiewicz, a public relations director of Re/Max Ontario Atlantic Canada.

The reason for the strength of Canada’s market in 2011 was the stability of the national economy, said the report.

The Re/Max report examined trends in 26 markets across the country, and 80% of those locations, 23 or 26, are expected to see average price growth for 2011. Similarly, 22 of 26 markets are expected to see price growth in 2012 in average home prices. 

But the overall results will level out more next year, with sales predicted to rise 1% and the average price expected to be up 2% by the end of 2012.

In 2011, the largest average price gain was not surprisingly in Vancouver, up 16%, followed by 7% gains in Toronto, Hamilton-Burlington, and Regina. The largest gains predicted in 2012 by Re/Max are for Regina, up 8%, followed by 5% gains in Greater Toronto, Halifax-Dartmouth, and St. John’s.

“Canadians seem intent on buying now, before rising prices and interest rates set in,” said Martysiewicz.