Industry News

Canadian real estate headed for record books

Tax cuts, economy aim to shape 2006 sales, prices

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Canada's resale housing market will set new records in 2006, according to a revised forecast prepared by The Canadian Real Estate Association. After setting the fifth consecutive annual record in 2005 at 483,250 units, CREA expects national resale housing activity to inch even higher by 1 percent to 488,160 units in 2006. Activity is then projected to ease by 3.3 percent in 2007. Rising interest rates have so far done little to cool resale housing transactions this year, CREA reported. In the first quarter of 2006, sales activity reached its highest level for any quarter on record in Alberta, Prince Edward Island and Newfoundland, and remained exceptionally strong in all other provinces. Alberta is expected to post the biggest annual increase in transactions this year, which reflects its upbeat economic, employment and population growth prospects arising from investment in the energy sector. After climbing 10.2 percent in 2005, CREA projects that the national MLS residen...