Remax Decade in Review

February 22, 2008 · Filed Under Market Trends, Remax Newfoundland, St. John's Investments and St. John's Real Estate 

Residential real estate markets across Canada post solid gains over past decade, says RE/MAX. Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada, according to a report released by RE/MAX.

RE/MAX Decade in Review 1997 – 2007 found that major housing centres across the country experienced strong consecutive growth between 1997 and 2007. Average price spiraled upward while unit sales climbed in tandem as more and more Canadians bought into homeownership. Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return.

Edmonton led the country in terms of percentage increase in average price. The city saw a 203 per cent upswing in housing values – or an 11.7 per cent increase annually – with average price rising from $111,587 a decade ago to $338,636 in 2007. Prince Edward Island experienced the highest percentage increase in unit sales, with the number of homes sold up 119 per cent in the 10-year period.

Percentage increases in home sales varied across the country, with Prince Edward Island experiencing the greatest upswing over the past decade, followed by St. John’s at 106 per cent.

Average Price1997 – 2007








07 vs. ‘97 Compound
Market 1997 2007 % +/- % ‘97 vs. ‘07
Greater Vancouver Area $287,094 $570,795 98.8 7.1140
Victoria $218,398 $466,974 113.8 7.8960
Kelowna $178,525 $497,322 178.6 10.79
Calgary $143,305 $414,066 188.9 11.1940
Edmonton $111,587 $338,636 203.5 11.7400
Saskatoon $98,270 $232,754 136.9 9.0050
Winnipeg $86,040 $187,456 117.9 8.0990
Barrie $140,569 $258,999 84.3 6.3020
Greater Toronto Area $211,307 $376,236 78.1 5.9390
Hamilton-Burlington $151,538 $268,857 77.4 5.9010
London-St. Thomas $131,382 $202,908 54.4 4.4420
Kitchener-Waterloo $141,387 $252,429 78.5 5.9680
Sudbury $108,521 $182,536 68.2 5.3380
Kingston $124,123 $222,300 79.1 6.0010
Ottawa-Carleton $143,866 $277,058 92.6 6.7730
Halifax-Dartmouth $109,827 $216,339 97.0 7.0140
Prince Edward Island $86,403 $133,457 54.5 4.4430
St. John’s $92,226 $149,258 61.8 4.9320
Saint John $86,171 $140,544 63.1 5.0130

National $154,606 $307,265 98.7 7.1100
Source: CREA, Local Real Estate Boards, RE/MAX

The decade was not without its obstacles – the high-tech meltdown, a US recession, 9/11, SARS, Mad Cow, a blackout that affected the entire Northeastern seaboard, natural disasters such as ice storms, hurricanes, and forest fires and more recently, the credit crunch south of the border. Given the continuation of sound economic fundamentals, it’s expected that residential real estate markets across the country will continue to experience healthy activity, albeit at a more moderate pace.

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