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Canada's housing market projected to increase 2.5% in 2015, according to RE/MAX

Fairly stable prices and a modest increase in sales activity in the greater area of Montreal, as well as in Quebec City

Laval, Dec. 10th, 2015 - Laval, Dec. 10th, 2015// High demand and low supply continued to characterize Vancouver's and Toronto's housing markets throughout 2015 as competition from buyers over the limited inventory of single-family homes pushed prices higher. The average residential sale price increased 17 per cent in Greater Vancouver and 10 per cent in the Greater Toronto Area, to approximately $947,350 and $622,150, respectively. As demand shows no signs of waning, these markets are expected to continue to see price appreciation in 2016, of seven per cent in Greater Vancouver and five per cent in the Greater Toronto Area.

"Based on the projections for Canada's key housing markets, RE/MAX expects the average home price in Canada to increase 2.5% in 2016," said Gurinder Sandhu, Executive Vice President, RE/MAX INTEGRA Ontario-Atlantic Canada Region. "While we expect to see some price decreases, particularly in regions that rely on the oil and natural resource sectors, strong demand in Canada's urban centres is expected to continue throughout next year.�

Regions outside of Canada's highest-priced cities reported a spillover effect from the price increases in Greater Vancouver and the Greater Toronto Area continuing a trend that RE/MAX reported this spring. There were significant year-over-year price increases in Victoria (13%), Fraser Valley (10%), Hamilton- Burlington (12%) and Barrie (8%).

It has been recently reported that the federal Department of Finance is considering increasing the minimum down payment for homes above $500,000 on a graduated scale. If implemented, RE/MAX expects the effect on first-time buyers in most of Canada's housing markets to be minimal. However, in Vancouver and Toronto, where entry-level homes are often above the $500,000 threshold, these restrictions may be discouraging to some potential buyers. According to recent RE/MAX survey findings, over two-thirds of Canadians already agree that 10 per cent or more is a good down payment for a home.

New Canadians continued to be an important demographic in Toronto, Vancouver and Montreal. Attracted to Canada's stable economy and low Canadian dollar, this trend is expected to continue through 2016.

In a recent Leger survey conducted for RE/MAX, 70 per cent of homeowners agreed that REALTORs® provide value when buying or selling a home. In competitive markets, sellers want to ensure they maximize the value of their homes, while buyers look for guidance during the fast-paced bidding process. Successful buyers typically put in an offer without conditions and have their deposits in hand.

Housing markets in Calgary and Edmonton showed slower activity but haven't experienced significant price adjustments. The average residential sale price in Calgary saw a moderate five per cent decrease, due primarily to a larger proportion of sales at the lower end of the market. In Edmonton, the average price increased by two per cent despite more inventory on the market. An ongoing $5 billion development project in downtown Edmonton has stimulated the local economy and helped to keep employment levels up, mitigating the impact of oil industry layoffs.

"In Alberta, a year after the sudden drop in oil prices, the housing markets have shown resilience," said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "With oil price volatility continuing to make buyers feel uncertain, we do expect the average sale price to decrease next year, by 3.5 per cent in Edmonton and four per cent in Calgary.�

Outside of B.C. and Southern Ontario, high inventory continued to be a significant factor affecting the markets in many cities, including Saskatoon, Regina, Montreal, Quebec City, Halifax and St. John's. This is primarily due to a period of increased construction; though new construction slowed down in most of these cities, it will take some time for the market to absorb the product.

RE/MAX 2016 average residential sale price expectation for Canada is an increase of 2.5 per cent as Canadians continue to see home ownership as an important milestone as well as a good investment.

For the full 2016 RE/MAX Housing Market Outlook report, click here.

AVERAGE RESIDENTIAL SALE PRICE 2012-2015 AND 2016 OUTLOOK

 

2016
(forecast $)
2016
(forecast %)
2015
(estimate)
2014/2015
% change
2014 2013 2012
Greater Vancouver 590 525 $ 2,70 % 575 000 $ 13 % 507 212 $ 476 568 $ 484 164 $
Grand Vancouver 1 013 665 $ 7,00 % 947 350 $ 17 % 812 652 $ 781 517 $ 730 063 $
Fraser Valley 566 706 $ 3,00 % 550 200 $ 10 % 498 703 $ s.o. s.o.
Kelowna 444 567 $ 2,00 % 435 850 $ 3 % 424 145 $ 397 000 $ 400 027 $
Calgary 443 232 $ -4,00 % 461 700 $ -5 % 484 790 $ 456 000 $ 412 315 $
Edmonton 360 379 $ -3,50 % 373 450 $ 2 % 367 038 $ 351 000 $ 334 318 $
Saskatoon 354 150 $ 0,00 % 354 150 $ -2 % 361 031 $ 338 309 $ 331 867 $
Regina 319 850 $ 0,00 % 319 850 $ -3 % 329 379 $ 320 430 $ 301 332 $
Winnipeg 302 478 $ 2,50 % 295 100 $ 2 % 289 538 $ 274 373 $ 255 058 $
Windsor-Essex 211 208 $ 5,00 % 201 150 $ 5 % 192 124 $ 183 518 $ 175 581 $
London-St.Thomas 273 002 $ 3,00 % 265 050 $ 4 % 254 141 $ 245 737 $ 238 822 $
Sudbury 253 813 $ 1,00 % 251 300 $ -2 % 255 371 $ 250 518 $ 247 462 $
Hamilton-Burlington 455 270 $ 4,30 % 436 500 $ 12 % 388 487 $ 383 840 $ 360 059 $
Barrie 362 303 $ 5,00 % 345 050 $ 8 % 319 612 $ 308 200 $ 299 685 $
Greater Toronto Area 653 258 $ 5,00 % 622 150 $ 10 % 566 626 $ 522 963 $ 497 150 $
Kingston 304 980 $ 2,00 % 299 000 $ 4 % 287 291 $ 287 567 $ 280 095 $
Ottawa 376 329 $ 2,00 % 368 950 $ 2 % 362 868 $ 353 881 $ 352 610 $
Greater Montreal 341 091 $ 1,50 % 336 050 $ 2 % 331 057 $ 323 963 $ 321 059 $
Quebec City 269 686 $ 1,50 % 265 700 $ 0 % 264 589 $ 267 294 $ 257 879 $
Saint John 180 044 $ 3,00 % 174 800 $ -2 % 178 440 $ 179 351 $ 174 026 $
Halifax-Dartmouth 283 134 $ 1,50 % 278 950 $ 2 % 273 917 $ 274 153 $ 268 799 $
Charlottetown 220 000 $ 2,00 % 218 612 $ -1 % 219 867 $ 203 722 $ 206 903 $
St. John's 291 354 $ -2,00 % 297 300 $ -3 % 306 405 $ 301 000 $ 285 529 $

Key Findings from 2016 RE/MAX Housing Market Outlook Omnibus Survey
While home prices continue to increase, this hasn't discouraged the mindset of the vast majority of Canadians who see owning a home as part of the Canadian dream. When purchasing a home, more than two-thirds of Canadians agree that 10% or more is a good down payment. A good down payment will help keep the carrying costs of a mortgage manageable; however, getting the best price for a property is also important to protect your financial investment. An experienced agent can help buyers with negotiations, inspections, local insight and other guidance to best protect their investment.

  • Canada = 90.9 %
  • British Columbia = 94.6 %
  • Alberta = 92.9 %
  • Saskatchewan and Manitoba = 94.4 %
  • Ontario = 90.5 %
  • Quebec = 87.3 %
  • Atlantic Canada = 91.5 %
Canadians are most likely to agree that 10% of the price of a home is a good down payment
  • A good down payment is less than 10%
    • Total = 18.0 %
    • Homeowners = 16.8 %
    • Non-homeowners = 20.7 %
  • A good down payment is about 10%
    • Total = 33.6 %
    • Homeowners = 34.6 %
    • Non-homeowners = 32.1 %
  • A good down payment is about 20%
    • Total = 26.5 %
    • Homeowners = 27.3 %
    • Non-homeowners = 24.7 %
  • A good down payment is more than 20%
    • Total = 14.7 %
    • Homeowners = 17.6 %
    • Non-homeowners = 8.7 %

LCanadians agree that when buying or selling a home, REALTORs® provide value
  • Total = 67.3 %
  • Homeowners = 70.4 %

To coordinate interviews, please contact:
Jessica Lavoie
RE/MAX Québec Inc.
450 668-7743
jessica.lavoie@remax-quebec.com
André Lavoie/Angélique Lecesve
Massy Forget Langlois relations publiques
514 842-2455, poste 36, poste 21
alavoie@mflrp.ca/angelique@mflrp.ca

About the RE/MAX Network
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence.

Over 100,000 agents provide RE/MAX a global reach of nearly 100 countries.

RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE:RMAX).

With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children's Miracle Network Hospitals® and other charities.

For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.

About RE/MAX Québec
With over 3,200 brokers located across 137 offices, RE/MAX offers the largest sales force in Québec. RE/MAX agents represent approximately 19% of all real estate agents in Québec and they have close 40% of market share, sometime more in some regions.
For more than 25 years, RE/MAX has been supporting Opération Enfant Soleil, a non-profit organization that raises funds to help sick children in the province. Since 1988, RE/MAX has raised more than $20 million to support the development of high-quality pediatrics for all children in Quebec.
Visit www.remax-quebec.com to find out more. .

About Leger
Leger is the largest Canadian-owned full-service market research firm. The survey of 1,555 Canadians was completed online between Nov. 2 and Nov. 5, 2015, using Leger's online panel, LegerWeb. Leger's online panel has more than 475,000 members nationally - with between 10,000 and 20,000 new members added each month, and has a retention rate of 90%. A probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding the future performance of the housing market, the Company's financial and operational outlook, the Company's belief that business fundamentals remain strong, as well as other statements regarding the Company's strategic and operational plans. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain agents, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX brand (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the most recent Form 10-K filed with the Securities and Exchange Commission ("SEC�) and similar disclosures in subsequent reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

Source: Estimates and forecasts are based on the opinion of independent RE/MAX broker/owners and affiliates.