Housing Prices will Remain Strong in 2008 says CMHC

Existing home sales as measured by the Multiple Listing service (MLS®) are expected to increase during 2007 by 7.6% to approximately 519,722 units, surpassing the previous record level of 483,344 set in 2005. In 2008, MLS® sales are expected to decrease by 3.9% to 499,650 units reflecting moderating demand due to rising mortgage carrying costs. Despite this forecasted decline, MLS® sales in 2008 will be at their second highest level on record. During 2009, continuing moderation is expected with growth falling by 2.3 per cent to 488,300 units.
The average MLS® house price is expected to grow by 10.6% for 2007, to about $306,000 as strong sales in Western Canada continue to put pressure on prices. In 2008, existing home markets will become more balanced and price pressures will begin to ease. The average MLS® price will increase by 5.2 per cent to about $322,000 in 2008. Looking ahead to 2009, the average MLS® price is forecast to increase by 3.8% to approximately $335,000.