CNW Group | SCOTIABANK - ECONOMIC REPORTS | Scotiabank Forum Predicts Another Healthy Year Ahead For Canadian Real Estate Markets

CNW Group | SCOTIABANK - ECONOMIC REPORTS | Scotiabank Forum Predicts Another Healthy Year Ahead For Canadian Real Estate Markets

Attention Business Editors:

Scotiabank Forum Predicts Another Healthy Year Ahead For Canadian Real Estate Markets

    TORONTO, Feb. 26 /CNW/ - Canadian real estate markets remain remarkably
buoyant, especially in light of the deepening housing downturn in the United
States and the generally softening conditions in most other advanced economies
globally, according to experts who presented today at Scotiabank's Canadian
Real Estate Outlook and Trends Forum 2008.
   During the forum, which was held in Toronto, keynote speaker Phil Soper,
President and CEO of Brookfield Real Estate Services commented, "Our
expectations are that balanced conditions will prevail throughout 2008, which
will mark a return to a more 'normal' environment than the highly skewed
seller's market that we have experienced over the better part of this decade.
A stumbling American economy will impact us, slowing growth here at home, yet
the solid foundation that supports the contemporary Canadian economy should
prevent the housing market here from retracting."
   Also speaking at the conference was Adrienne Warren, Senior Economist,
Scotiabank. "We expect construction, sales and price gains to moderate in 2008
due to decreasing affordability, especially for first-time buyers, and some
softening in domestic economic conditions associated with the intensifying
U.S. slowdown," remarked Ms. Warren while presenting the findings of her
latest Real Estate Trends Report. "Housing starts will likely ease to around
204,000 units, still firmly above underlying household formation, with the
more affordable multiple-family segment holding up better than single-detached
construction."
   Ms. Warren added that more balanced resale market conditions, as sales
volumes edge down and more listings come on stream, should bring average price
increases back into the mid-single digit range. Renovation activity, which
lags the trend in home resales by one to three years, will outperform new
construction.
   Mr. Soper added, "New flexible financial products, affordable interest
rates and increasing choice in the condominium market across Canada, will
continue to attract first-time buyers to real estate - even in high-priced
markets. We can also expect to see a broadening buyer pool, as emerging high
growth market segments such as single female buyers are anticipated to take
advantage of the favourable market conditions."

   Economic conditions still favour Western Canada