Canada ‘breaking records’

Canada’s housing market has achieved $100-billion in sales for the first time, according to the Canadian Real Estate Association...

The Ottawa-based group said 362,934 units sold in 2007, a 7.9% increase from a year ago. Annual sales records were set in Regina, Saskatoon, Winnipeg, Toronto, London and St. Thomas, Hamilton-Burlington, Kitchener-Waterloo, Ottawa, Montreal, Quebec City, Saint John, Halifax and Newfoundland and Labrador

"The statistics show just how dynamic the Canadian housing market was in 2007 in virtually all parts of the country," said Ann Bosley, president of CREA. "The record sales activity shows it remains a very affordable real estate market."

In terms of sales, the Canadian real estate market appears to have peaked in the second quarter. However, the drop-off has been moderate with sales in the fourth quarter down only 1.6% from the third quarter.

"Resale housing demand remained high throughout 2007 due to job and income growth, the continuation of attractive financing and upbeat consumer confidence," said Gregory Klump, chief economist with CREA.

He added: "Additional interest rate cuts this year will keep the resale housing market activity on a strong footing and prices will continue to rise, but at a slower pace," said Mr. Klump.