A surge of new listings should act to keep housing price increases in check across Canada in 2007, specialists predicted Wednesday.

The 2007 outlook from the Re/Max real estate company found that while the number of homes listed for sale is expected to climb, demand will remain strong in 17 of the markets it surveyed, including Vancouver, Calgary and other big cities.

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, the company said in a release.

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 five percent to 290,000 Canadian dollars (261, 000 U.S. dollars) by year-end 2007, up from 275,000 Canadian dollars (247,500 U.S. dollars) a year ago.

All but three of the markets surveyed are predicting further escalation in housing values, ranging from 3 to 10 percent, in 2007, Re/Max said.

The highest price increases are projected in Calgary and Edmonton, two big cities in the oil-booming Alberta province, with housing values rising 10 percent to 385,000 Canadian dollars (346, 500 U.S. dollars) and 265,900 Canadian dollars (239,320 U.S. dollars) respectively.

The highest percentage increase in 2007 unit sales is expected to occur in Saskatoon of Saskachewan province, where sales are forecast to climb 7 percent to 3,630 units.

Source: Xinhua