Alberta house prices moved up just over 30 per cent last year, and Canadian estate agents expect them to rise by a further 15.5 per cent next year.

The forecast, from the Canadian Real Estate Association, is based on activity on its and the National Association of Realtors’ national multiple listing service. This, said CRE, will remain high this year and in 2008. ‘National sales activity is forecast to ease slightly but remain above 450,000, which is near the strongest levels on record’.

House market activity is likely to increase in Saskatchewan (where prices are predicted to go up by 8.2 per cent this year) and in Manitoba (where prices rises of (.5 per cent are expected). However, activity will inch lower in other provinces, said CRE.

The average Canadian house price was put at £122,400 at the end of last year – 11.1 per cent up on 2005. The average is forecast to rise ‘modestly over’ nu 6.9 per cent next year.

British Columbia has the highest average price (£172,800) followed by Alberta (£126,200) and Ontario £123,100). Prices in these provinces are forecast to go up next year by 9.4 per cent, 15.5 per cent, and 4.0 per cent respectively.

‘Resale housing markets will become more balanced in all provinces, but will remain tighter in western provinces where annual price increases will be the largest’, said CRE chief economist Gregory Klump.

‘Mortgage rates are low and will stay that way. Employment is high and will continue to rise. Consumer sentiment is upbeat. Incomes are rising. The combination of those factors will keep the housing market on a strong footing over the next couple of years.

‘Annual price increases will generally be smaller than last year in all provinces. Saskatchewan is forecast to buck the trend by posting a bigger annual average price increase this year because sales activity has outstripped growth in new listings, which has caused the resale housing market to tighten there’.

	MLS average prices		Annual rate of increase
	2006 £	2007 £	2006 %	2007 %
British Columbia	172,800	189,100	17.1	9.4
Alberta	126,200	145,800	30.8	15.5
Saskatchewan	58,400	65,200	7.6	8.2
Manitoba	66,400	72,700	12.2	9.5
Ontario	123,100	128,000	5.9	4.0
Quebec	85,800	89,300	5.1	4.0
New Brunswick	56,100	58,300	5.2	4.0
Nova Scotia	74,800	79,100	6.3	5.7
Prince Edward Island	55,400	58,900	7.0	6.3
Newfoundland	61,700	63,300	-1.2	2.6
Canada	122,400	130,900	11.1	6.9

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