Canada’s resale real estate market should see only modest price and unit sales corrections across the country throughout 2009, says Royal LePage.
Both national average house prices and the number of homes sold is expected to decline this year, according to the real estate company’s 2009 Market Survey Forecast released today.
Nationally, average house prices are forecast to dip by 3 per cent from last year to $295,000, while transactions are projected to fall to 416,000 (-3.5 per cent) unit sales in 2009.
“Emotional reaction to recent economic and political instability did much to dampen consumer confidence during the latter part of 2008, causing a marked slowdown in house sales activity,” said the survey. “However, as a more rational understanding of the issues gains ground, together with a wide range of announced corrective measures, consumer confidence is anticipated to recover, prompting real estate activity to pick up once again in the latter half of 2009. ”
Royal LePage said that after moving through a period of correction that started in 2007, well before other regions in the country, both Calgary and Edmonton’s housing markets are anticipated to return to a growth state later in 2009, characterized by stable average house prices and increased unit sales. Despite slowdowns and delay with some major energy projects, Alberta’s economy remains one of the strongest in Canada, said the survey.
“The number of Calgary homes sold in 2009 is anticipated to increase by 7 per cent,” the survey said.
Royal LePage is forecasting the average MLS sale price in Calgary to dip by 1 per cent to $402,000 this year.
