Royal LePage forecast average house price will rise by 9.5% in 2007

CANADIAN PRESS - July 5th, 2007 at 9:07 AM EDT

TORONTO — Royal LePage Real Estate Services is forecasting Canada's national average house price will rise by 9.5 per cent this year to $303,300, passing $300,000 for the first time.

After a strong second quarter, robust conditions are expected to prevail through to year's end as all regions are poised to experience a rise in average house prices, with double-digit gains forecast for Edmonton, Calgary, Winnipeg and Regina.

Home sale transactions are projected to rise by eight per cent to 522,306 units by the end of 2007.

Phil Soper, CEO of Royal LePage, says his company continues to expect areas of aggressive price appreciation in the West and modest, mid-single-digit price increases in Central and Atlantic Canada.

New to the stage of regional players exhibiting extreme home sales activity and house price increases is Saskatchewan.

Record numbers of homes sold in both Regina and Saskatoon in the second quarter as intense demand was driven by the return of Saskatchewan residents from expensive Alberta living.