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Urban home prices going up, Re/Max says

Real estate agency Re/Max says all Canadian cities will see housing prices rise in 2011, with the average price expected to go up three per cent to $350,000 by the end of next year.

Real estate agency Re/Max says all Canadian cities will see housing prices rise in 2011, with the average price expected to go up three per cent to $350,000 by the end of next year.

Meanwhile, Re/Max predicts a five per cent fall in new and resale home sales to 441,000 units this year compared with last, with around the same number expected to sell in 2011.

Lower inventories in several markets are boosting prices, but low interest rates and improved consumer confidence will lead to improved sales in every province moving forward.

Re/Max said there will be an increase in home values in nearly every city next year, with St. John’s, N.L., leading the way with an expected eight per cent increase in the average price.

Home values in Greater Vancouver, Kelowna, B.C., Regina, Saskatoon, London, Ont., Ottawa, Sudbury, and Greater Montreal are all predicted to climb five per cent.

Meanwhile, condominiums are expected to get a bigger share of the market in 2011, and first-time buyers will be most active, looking for affordable homes less than $500,000.

“The relentless drive in the market reminiscent of years past will be gone and, instead, we can expect to see more normal, balanced market conditions, with buyers maintaining a slight edge,” Elton Ash, regional executive vice-president, Re/Max of Western Canada, said in a statement.

 
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