Home prices soar

Saskatchewan has the hottest neighbourhoods in Canada when it comes to house price increases.

A national spring survey conducted by broker Century 21 Canada shows that several areas in Saskatchewan have seen home prices leap in the past year - some by close to 60 per cent - far surpassing the jumps anywhere else in the country.

The biggest increase came in Regina's Whitmore Park neighbourhood, where an average three-bedroom bungalow rose in price by 57 per cent over the past year to $330,000 from $210,000.

Other neighbourhoods in Regina, Prince Albert and Saskatoon also showed huge price jumps of more than 40 per cent.

The survey looked at the price of a typical house - the kind that sells most often - in each of 198 neighbourhoods across the country.

While far more neighbourhoods showed price increases rather than drops, there are still many areas where house prices have declined.

In several neighbourhoods in the south and west of Edmonton, for instance, prices have fallen by 12 to 14 per cent on bungalows and two-storey houses. And some Calgary neighbourhoods are also showing price declines of up to 13 per cent In Mont Tremblant, Que., north of Montreal, prices on condos and cottages have also seen some sharp declines, dropping by 11 to 14 per cent in the past year.

While the number of house sales across the country has slowed recently - causing one economist to declare the housing boom officially over - prices are generally holding up very well, said Century 21 Canada president Don Lawby.

"Even though the [sales] numbers for February are down a bit, the economy continues to be pretty good ... compared to what we've seen in the U.S.," he said.

In the coming year there will continue to be price increases, Mr. Lawby predicted, although they will not be the dramatic leaps of recent years.

"They're going to be the cost of living plus a couple of per cent," he said.

The price declines in parts of Alberta are no surprise, Mr. Lawby said, given the enormous increases of recent years.

In Saskatchewan, the numbers are up sharply because house prices were previously at very low levels, and there is a limited inventory of homes available.

At the same time, "the economy in that province - nobody's ever seen it as good. Everything is ticking ... oil and gas and potash and agri-business are all doing well."

The housing sector is highly localized, Mr. Lawby said, and the health of the economy in any particular city is going to be reflected in house prices. So, it's no surprise that prices have fallen 2 per cent in one neighbourhood in Prince George, B.C., where the forest industry is suffering, while districts in other parts of the province are showing double-digit increases.

(prepared by Richard Blackwell/Globe and Mail)

Where's hot, where's not

Year-over-year percentage change in housing prices:

CANADA'S HOTTEST
NEIGHBOURHOODS

Regina, Whitmore Park 57%
Saskatoon, Avalon 49%
Regina, Walsh Acres 48%
Pr. Albert, Sask., E. Flat 48%
Sylvan Lake, Alta. 44%

CANADA'S COOLEST
NEIGHBOURHOODS

Edmonton, South -14%
Mont Tremblant, Old Village -14%
Edmonton, Southwest -13%
Calgary, Cranston -13%
Mont Tremblant, Resort Area -11%

Source: Century 21 Canada