Canadian Capitalist

A Canadian Personal Finance Weblog

Canadian House Price Forecast

December 22nd, 2004 · No Comments

Royal LePage has forecast that the average house price in Canada to rise by 4.5% in 2005. RE/MAX issued a similar forecast, predicting average house price to rise by a more bullish 6%. Here is a comparison of the forecasts for various cities:

City Royal LePage RE/MAX
Halifax 1.7% 8.0%
Montreal 5.0% 6.0%
Ottawa 4.5% 6.0%
Toronto 2.5% 3.5%
Winnipeg 6.0% 3.0%
Regina 5.0% 4.5%
Calgary 6.2% 5.0%
Edmonton 7.0% 12.0%
Vancouver 3.0% 8.0%

Increasing home prices might make us feel a little bit richer, but in reality, property taxes are probably going to rise. If we stay in the same city, we are only moving from one high (or low) priced house to another. Unless we move from a high housing cost city like Vancouver (av. price $387,000) to Winnipeg (av. price $120,000), or make a speculative move like moving to a rental house, increasing house prices are neutral to slightly negative for most of us.
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