Re/Max sees average national house price rising 2% next year

Re/Max sees the average national house price rising by two per cent in 2017, led by big projected gains in real estate prices in the Hamilton, the Greater Toronto Area and Kitchener-Waterloo.

In its 2017 housing market outlook, which was released Thursday, Re/Max said it sees house price appreciation in Hamilton leading the country with an 11 per cent gain in average residential home sale prices, followed by eight per cent gains expected for both the GTA and K-W.

The Greater Vancouver Area, which had been the country's hottest real estate market until various levels of government took steps to cool it off, is forecast to see a modest two per cent increase.

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"Although demand remains high in both urban centres [Toronto and Vancouver], limited inventory in the freehold market, the new 15 per cent foreign-buyer tax in Vancouver and the recent tightening of mortgage rules by the federal government are expected to soften market activity in the short term," Re/Max said in its outlook

The firm said the effect of Vancouver's foreign-buyer tax is already being felt in Toronto and Montreal as home hunters are expected to pursue properties in those regions instead of Vancouver.

"Measures taken by the federal government to tighten mortgage insurance criteria for new home buyers is expected to temper local first-time buyer activity across the country in the short term, but is not expected to have a long-term impact in most regions," Re/Max said.

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Buyer activity in the Calgary and Edmonton regions is seen picking up slightly in the second half of 2017 if job opportunities in the oil sector continue to gradually come back to Alberta.

"Low oil prices will continue to lead to tempered consumer confidence, but ongoing development projects in Edmonton and the recent approval of the Trans Mountain pipeline are expected to provide a boost to the provincial economy and help keep housing markets relatively stable in 2017,"  Elton Ash, a Re/Max regional executive vice for Western Canada.

Other 2017 forecast average sale prices changes across the country include:

• Victoria, +1.6 per cent.
• Fraser Valley, -5 per cent.
• Kelowna,+4 per cent.
• Winnipeg, +3 per cent.
• Ottawa, +2 per cent.
• Greater Montreal, +6 per cent.
• Quebec City, -2 per cent,
• Halifax, +1.5 per cent.
• Charlottetown, -4 per cent.