Western Canada enjoys best of bouyant market

Canadian real-estate markets remain "remarkably buoyant," especially in light of the deepening housing downturn in the U.S. and the generally softening conditions in most other advanced economies globally, says a national report released yesterday.

The report, authored by Adrienne Warren, senior economist at Scotiabank, said from a housing demand standpoint, "economic conditions still favour Western Canada, with its booming resource-based industries and extremely tight labour markets."

"Yet, affordability is becoming a constraining factor in several centres, including Calgary where average home prices have doubled in the past four years," said the Real Estate Trends report.

"The odds of significant overbuilding, or of the price declines that are now occurring in the United States, are still relatively low. Inventories of unsold homes, including condominiums, in Canada's major centres are well contained, particularly when compared with the housing-market upswing of the late 1980s.

"Tighter lending guidelines for developers and a lower level of investor participation have reinforced a more cautious approach among homebuilders," the report added.

(Source: Vancouver Province)