Alberta’s red-hot economy is fuelling demand for residential real estate in Nova Scotia, PEI, New Brunswick, and Newfoundland this year, according to a report released today by RE/MAX Ontario-Atlantic Canada.

“Strong economic performance in Western Canada continues to spillover into other parts of the country,” says Michael Polzler, executive vp and regional director. “A serious influx of Western Canadian purchasers has bolstered housing sales in every Atlantic province.”

The report found that in-migration from Western Canada has played a major role in stimulating home-buying activity in key regional centres. While most purchases were made with retirement in mind, investment in residential real estate was also a factor driving sales. The wealth effect has also contributed to a bounce back in sales after one of the worst winters on record. In fact, 82% of markets surveyed in Atlantic Canada saw a reversal of trends in April.

First-time buyers are a major force in most Atlantic markets surveyed, driving demand for residential properties priced at approximately $100,000 plus. Inventory in virtually every market is tight at the entry-level price point. The top-end of the market — priced in excess of $250,000-$300,000 in most areas — has also been brisk. Waterfront properties, in particular, have benefited from the increase in Western Canadian and European purchasers.

Newfoundland-Labrador currently leads the region overall in terms of percentage increases in both unit sales and average price, with the number of homes sold up close to 18% year-to-date and average price up almost 15%, compared to the same period one year ago.

“Housing performance in Newfoundland has been nothing short of remarkable,” says Polzler. “There are $10 billion in capital works projects on the table and the pressure in the real estate market is only starting to build. By year-end 2008, housing sales and values are expected to climb by double-digits, leading not only the region, but the country, in terms of percentage increase.”