RE/MAX Report: Housing Evolution

Billions spent in new construction, renovation, and infill over the past decade have contributed to a serious upswing in the calibre of Canada’s housing stock, propping up residential average price in the country’s major centres, according to a report released today by RE/MAX.

The report states that in Calgary, the average price climbed from $176,305 in 2000 to $398,764 by year-end 2010, an 126% increase. As well, being one of Canada’s youngest cities from a housing standpoint, more than one third of Calgary’s owned dwellings were built in the 10 year span from 1996 to 2006.

The RE/MAX report finds that Calgary’s future looks promising:

The city continues to attract new residents—once again posting positive population gains after a short-lived contraction during the recession, although that was preceded by a period of double-digit growth among the strongest in Canada.

Calgary’s potential remains vibrant, with many positive developments on-going, particularly in terms of non-residential construction and infrastructure. Smart growth is the future of city planning, with the expansion of light rail transit top of mind.

While buyers remain cautious—in light of global economic concerns—locally, the picture continues to improve with increased employment and rising confidence.

You can read the entire report on Calgary and other major centres here (PDF opens in new window)

2 responses to “RE/MAX Report: Housing Evolution

  1. They make it sound like the incerease in prices is due to renovations, and building houses, or at least implying this. With these Re/max reports there is never a clear picture that makes sense, its all just smoke to paint a rosy picture.

    Its been supported many times with factual evidence that the run up in prices in the last 7 years was due to a flood of lending by the banks, with currently Canadians being more in debt that Americans, and sustained by low interest rates, that are necessary to prevent a large correction.

  2. You are absolutely right John…!

    To add to that argument, the following are other factors:

    – 0% down payment and 40 years amortization was the first thing Jim did to propel housing price and sales. Even when interest rate was 4-5%, this change made a huge increase in average house price and sales.

    To firm this trend up, Jim brought (though it is Mark Carney, but it is Jim who holds the key) historically low interest rates and assured Canadians that they will keep this rate for a longer period. This tempted most of property virgins to fall into the trap.

    There are other minor factors like self-employed mortgages which doesnt need proof of revenue…

    I am holding on to it until it makes sense to jump into the market…

    Cheers…

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