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, says a report released today by RE/MAX.

The 2007 market outlook report found that while the number of homes listed for sale is set to climb, demand will remain strong in the 17 markets surveyed, including Vancouver, Victoria, Kelowna, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Kitchener-Waterloo, Hamilton-Burlington, Toronto, Ottawa, Montreal, Halifax, Charlottetown, Saint John and St. John’s.

With few exceptions, projections for sales volume in 2007 match or fall short of peak performance 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 price is predicted to climb a modest 5% to $290,000 by year-end 2007, up from $275,000 one year ago.

All but three of the markets surveyed (Kitchener-Waterloo, St. John’s, and Charlottetown) are predicting further escalation in housing values, ranging from three to 10%, in 2007.

“Strong economic fundamentals continue to fuel healthy residential real estate activity in markets across the country, despite what is happening south of the border,” said Michael Polzler, executive vp and regional director, RE/MAX Ontario-Atlantic Canada. “We are heading into another year of economic growth. Consumer confidence levels are strong. Unemployment levels are forecast to remain low. Oil prices are expected to hover at $60 per barrel. The Canadian dollar continues to climb. The Bank of Canada is holding the line on interest rate hikes. It’s all positive.”

Leading the country in terms of percentage increase in average price in 2007 are Calgary and Edmonton, with housing values rising 10% to $385,000 and $265,900 respectively.

In 2007, the highest percentage increase in unit sales is expected to occur in Saskatoon, where sales are forecast to climb 7% to 3,630 units. Edmonton is expected to place a strong second, with the number of homes sold climbing 5% to a record 21,300 units. Regina and Hamilton-Burlington are tied for third place, both projecting a 2% increase in unit sales to 2,950 and 13,800 units respectively. Vancouver, Kelowna, Winnipeg, Ottawa, and Saint John are all projecting sales volume on par with last year’s levels.