Realtor foresees dip in Toronto
January 7, 2009
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The average price of a house in Canada is likely to decline by 3 per cent this year as sales activity continues to cool, according to Royal LePage Real Estate Services.
The number of residential resales is forecast to decline 3.5 per cent across Canada, though the national realty firm expects there will still be local warm spots.
Not among them is Toronto, however, where a 4 per cent pullback is forecast for 2009, to an average house price of $364,800.
Yesterday's forecast follows a "significant reset" in 2008 – which Royal LePage had predicted 12 months ago would see a 3.5 per cent average increase across Canada.
Preliminary numbers now show a 1.1 per cent decline.
Royal LePage says this was an "emotional reaction to recent economic and political instability" and expects a calmer atmosphere, along with federal stimuli and low mortgage rates, "to cause activity to pick up in the latter half of 2009."
Overall, the realtor foresees "only modest price and unit sales corrections" – not a U.S.-styled crash.
Canada's average house price is forecast to dip to $295,000, down from $304,000 in 2008 and a peak $307,265 in 2007. Cities priced below the national average may see modest 2009 hikes.
The steepest price decline – 9 per cent – is foreseen for Vancouver.
The Canadian Press
Toronto Star