New Listings Expected to Slow Home Price Increases in 2007

Home buyers across the country will breathe a sigh of relief in 2007, thanks to a nationwide influx of new listings that is expected to slow price appreciation in major Canadian centres.

While the number of homes listed for sale is expected to climb, demand will remain strong in Ottawa.

Sales volume next year is expected to equal or under peak levels reported in 2005 and 2006, with more balanced conditions - characterized by healthy inventory levels and less urgency in the market - expected to emerge.

Nationally, 462,000 properties are forecast to change hands next year, making 2007 the third best year on record.

After four years of double-digit gains, average prices are expected to climb 5 % to $290,000 by year-end 2007, up from $275,000 a year ago.