Lorne Park is a suburban residential neighbourhood located in southwestern Mississauga, Ontario, Canada, first started as a resort.

History

The city of Mississauga was once known as Toronto Township, which comprised several towns and villages. The first settlements began around 1800 and developed around factories, harbors, or other local businesses. The larger of these rural communities were Clarkson, Erindale, Meadowdale, Malton, Port Credit and Streetsville. 1

Many smaller villages also sprung up near the larger towns. These include Barberton, Britannia, Burnhamthorpe, Derry West, Elmbank, Frogmore, Hanlan, Harris’ Corners, Hawkins’ Corners, Lisgar, Lorne Park, Mount Charles, Palestine, Pucky’s Huddle, Sheridan and Summerville. 2 The villages prospered until the arrival of the railroads in the late 19th century. The rise of the Industrial age prompted rapid urban growth and a steady economic and population decline in many rural Ontario communities. By 1915 most of the villages, now referred to as the “lost villages” of Mississauga, disappeared. Except for a few cemeteries, little is left to record their existence.

Lorne Park shares a common history with Clarkson. Before the arrival of the Europeans, all the land in Toronto Township belonged to the Mississauga Indians. The first white settler in the Clarkson-Lorne Park area was Thomas Ingersoll, who established the Government Inn and trading post on the Credit River in 1798. On August 2, 1805, the Mississauga Indians sold the British Government the Mississauga Tract, which ran from the Etobicoke Creek to Burlington Bay. The 70,784 acre area included 26 miles of shoreline and extended five miles inland.3 Out of this land deal Toronto Township was established and many small communities quickly developed. Clarkson and the area that would become Lorne Park were founded along the shores of Lake Ontario.

In 1820, a log road was built from the mouth of the Credit River to the Humber River, followed shortly by a bridge that enabled travelers going from York to Hamilton to pass through Clarkson and attracted more settlers. By the 1830 logging was a major industry in Lorne Park. Most of the pine wood was exported to England and the United States.

Over the early part of the 20th century Lorne Park grew into a unique community. In 1887 Joseph Thompson bought 86 acres of land in Lorne Park which became known as Thompson’s Wood (now called Jack Darling Park). Thompson’s brother Ernest Seton lived there until the home was lost in foreclosure. Ernest left, changed his name to Ernest Thompson Seton and achieved fame as an author and artist. The Lorne Park Post Office opened in 1892 and George D. Perry was the village’s first postmaster. James Alberton built the three-story Albertonia Hotel in 1899. In 1927, it was renamed the Lorne Park Lodge but burned down two years later in 1929.

The Lorne Park Mission Hall was built in 1902. It featured an open porch and a bell tower on the roof. The first library was organized by sawmill owner Robert Taylor in 1903. The first library meeting was held in January, 1904, in the Lorne Park Mission Hall. Reverend H.Thompson officiated over the first Anglican services in 1906, also held at the Lorne Park Mission Hall. St. Paul’s Anglican Church was built in 1914. The Lorne Park Baptist Church was founded Sunday, May 18, 1919, in the Lorne Park Mission, with Reverend J. Williamson presiding.

At some point a 75-acre (300,000 m²) "pleasure grounds," was operated in Lorne Park by the Toronto Park Association, included separate parlours for men and women, bowling lanes and merry-go-rounds. Travel to the resort from Toronto was often by steamer. After a series of bankruptcies, the resort lands were sold to cottagers. With access of the QEW highway, suburbanization of the original lands and surrounding area ensued in the post WWII period. (Brown, 1997 Toronto's Lost Villages)

For the next half century, Lorne Park remained a small burg, until 1968 when it, along with several other villages, was amalgamated to form the town of Mississauga. Six years later, Mississauga was incorporated and now is Canada’s 6th largest city. Even though Lorne Park was absorbed into Mississauga, it remained a distinct neighborhood that retains ties to its pioneer origins.

Lorne Park Estates

Lorne Park Estates is a community of about 77 acres (310,000 m²), located in the City of Mississauga and bordered by Lake Ontario on the south, Lakeshore Road on the north, Jack Darling Park on the west and Richard’s Memorial Park on the East.

Homeowners are not only responsible for municipal taxes and upkeep on their land, but they are also co-operately responsible for the upkeep and taxes on 37 acres (150,000 m²) of the area including residential roads, forests, walking trails, a cottage, the small park area and a beach.

The two roads into Lorne Park Estates are marked as "private" not just because they are privately maintained, but because they are not conducive to traffic. The privately maintained roads in the community are extremely narrow with no sidewalks, few through-fares and with many dead ends.

History

Historically the community, and the piece of land in question, has seen many changes. The land, first occupied by the Mississaugas, was transferred with larger land portion through Treaty No. 13 to Governor John Graves Simcoe in 1805. The land, which housed a significant stand of pines, was slated to be used for its wood as resources for the British Empire. However, this was not required and the land remained intact and became a subject of interest. First by individuals of the British military who wished to settle, and then by sundry businessmen and investors. Its legal ownership in the 1800s and early 1900s changed hands many times, ultimately resulting in the owners taking charge of the community before its designation came under city jurisdiction. Currently, owners have postal, garbage and water service, while road, parks and sewage are handled by the association or the individuals.

In a survey of 1888 we see the “Lorne Park Summer Resort Company” creating small cottage lots, a hotel, wharf, walking trails and common grounds. The community was designed by Edmund Burke, and so were many of its original cottages. Trains, carriage and steamers left Toronto on a regular basis to ferry visitors to the newly built wharf, picnic areas, music pavilion and eating establishment - which would later become a hotel. Indeed most of the names of the investors can still be seen in the community such as Roper, Stockwell, and Henderson. Alas, not all the immemorial were to survive as originally entertained. Orient Avenue and North Crescent became Orient Marsh. Lugsdin Avenue became Lugsdin Creek. Campbell, McIntyre, Neville, Venn, Hill Dale and Moore Avenue and Boustead Terrace disappeared or became topographical features.

Another survey of 1922, sees slight changes to the lot configuration under the auspices of Lorne Park Estates Limited. Few of the lots were bought with the intention of building small cottages. According to "A Village Within a City - a Story of Lorne Park Estates" (1980), some people were purchasing two to four lots in order to create larger properties of up to 1-acre (4,000 m²). However, the forests, walking paths, gathering area and beach area continued to be collectively owned and managed.

Of the summer homes that were built, a number were designed by Edmund Burke in the English Arts and Crafts style as two-stories with deep verandas and sleeping balconies to catch the breeze of Lake Ontario.

Transportation

The main roads in Lorne Park are Lakeshore Road, Lorne Park Road, Truscott Drive, and Indian Road. The main bus routes are 23 Lakeshore and 14 Lorne Park, operated by Mississauga Transit.

Lorne Park Schools

The two-story, four-room Lorne Park Public School opened in 1923, with 76 students enrolled. Throughout the 1930s the school was a center of community activity, hosting concerts, Christmas festivities, dinners and village events. The original school was destroyed by fire on January 22, 1982 but was rebuilt and will celebrate its 90th anniversary in 2013. It serves students grades 1 through 5. The Lorne Park Secondary School was founded in 1958 and serves 1400 students in grades 9 through 12. The school is known for its academic and artistic excellence and for one of the top rated athletic programs in the nation.

• Lorne Park Secondary School
• Holy Name of Mary College School

Prospect of rising mortgage rates may prompt heightened buyer activity early in the year, according to Royal LePage forecast

TORONTO, January 6, 2011 – The average price of a home in Canada increased between 3.9 and 4.6 per cent in the fourth quarter of 2010, compared to the previous year, as markets shrugged off a lackluster third quarter and returned to a post-recession growth profile. Home values are forecast to continue a moderate and steady climb in many of the country’s key housing markets through 2011 with sales activity skewed to the first half of the year, according to the Royal LePage House Price Survey and Market Survey Forecast released today.

The low cost of borrowing stimulated the housing market in 2010, and this trend is predicted to continue in the first half of 2011. The widely held consumer belief that rates will rise in the latter part of 2011 may prompt an increase in buying activity early in the year.

“Trends in the housing market continue to be driven by the lingering after-effects of the recession,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services.  “Canadians realize that interest rates are unsustainably low and that homes will become effectively more expensive when mortgage rates return to normal levels.  We will likely see more price appreciation early in 2011 as some buyers complete transactions in advance of anticipated higher borrowing costs.”

Soper added, “2011 is expected to unfold much like 2010, when close to 60 per cent of sales volume occurred in the first half of the year in anticipation of interest rate increases that never materialized. However, housing market activity in the first half of 2011 will be modestly closer to the norm, as last year’s phenomenon was exacerbated by mid-year tightening of mortgage accessibility and the introduction of HST in Ontario and British Columbia.”

Regionally, the strongest price appreciation of the cities studied is expected in mid-sized urban centers where affordability is better than the national average. For example, in Winnipeg, St. John’s and Fredericton, two-storey homes below $300,000 are still widely available. Demand in these cities is expected to be strong, putting upward pressure on home values.

Cities in Alberta are expected to be among Canada’s strongest performing markets in 2011. Woes in the historically volatile region’s housing market stretch approximately five years, when the Alberta housing market suffered a sharp correction following several years of double-digit price increases.  The province’s energy-driven economy staged a comeback in 2010, recovering from the recession-led plunge in oil and gas prices.  Major employers are expected to steadily increase hiring in 2011 which should attract new residents to the province and put upward pressure on the limited supply of housing. Royal LePage forecasts the average price of a home in Calgary will increase 5.4 per cent through 2011 while Edmonton home prices will increase 3.3 per cent. Home sale transactions are predicted to rise 6.7 per cent in Calgary and 9.1 per cent in Edmonton over the same period.

Across Canada, the average price of a home is forecast to rise 3 per cent over the coming year to $348,600 while the number of transactions is expected to drop 2 per cent.

During the fourth quarter of 2010, average home prices either increased or stabilized year-over-year, with Winnipeg, Ottawa, Montreal and St. John’s seeing the biggest gains.  Nationally, the average price of detached bungalows rose to $324,531 (up 4.6 per cent), the price of standard two-storey homes rose to $360,329 (up 4.4 per cent), and the price of standard condominiums rose to $226,746 (up 3.9 per cent), compared to the fourth quarter of 2009.

Mr. Soper continued, “Like many Canadians, we anticipated an end to the ultra-low interest rate era before year-end 2010.  Paradoxically, global economic weakness, particularly in the United States, allowed policy makers and financial institutions to keep borrowing costs low, resulting in a stronger Canadian housing market and a better than forecast fourth quarter.”

REGIONAL MARKET SUMMARIES

The residential real estate in market in St. John’s, Newfoundland saw strong year-over-year price gains across all three housing types surveyed every quarter this year. However, market has showed signs of cooling as inventory starts to rise. 

Detached bungalows and two-storey houses in Montreal saw an 8.7 per cent year-over-year increase in the fourth quarter, while standard condominiums jumped 11.3 per cent. Average prices in Montreal are forecast to increase by a more modest 3 per cent in 2011 as a more balanced market emerges.

Ottawa’s housing market saw year-over-year price appreciation ranging between 6.3 and 10 per cent across all housing types surveyed this quarter. However, as inventory grows, Ottawa can expect price increases to be closer to 4 percent in 2011.

House prices surveyed in Toronto increased modestly year-over-year. Standard two-storey homes witnessed the largest increases at 5.6 per cent. Market activity slowed in the second half of the year as buyers rushed to the market in the first half of the year in anticipation of interest rate hikes and HST.  For 2011, price increases are expected to be very modest at approximately 1 per cent.

Detached bungalows, standard two-storey homes, and standard condominiums in Winnipeg witnessed strong year-over-year price gains this quarter. Detached bungalows performed the strongest, increasing 10.3 per cent compared to the fourth quarter of 2009. Although the market is showing signs of cooling, sellers are still seeing multiple offers and are often receiving higher than their asking price. Winnipeg is expected to maintain its momentum throughout 2011 with prices rising around 7 per cent.

Single family homes performed best in Regina, which saw standard two-storey homes increase 9.1 per cent, while detached bungalows rose 8.4% and standard condominiums increased 2.4 per cent. Prices in Regina are expected to increase an overall average of 5 percent in 2011.

Both Calgary and Edmonton are positioned for house price increases in 2011 with a rebounding energy sector. In 2010, Calgary witnessed moderate year-over-year price depreciation across all housing types surveyed. Edmonton saw more modest price depreciation for two-storey houses, while condominiums decreased 5.7 per cent. Detached bungalows witnessed the only price increase among housing types surveyed at 1.2 per cent.

Single family homes in Vancouver dominated house price gains as two-storey houses rose year-over-year by 9.8 per cent in 2010. Condominiums on the East Side performed particularly well and, on average, Vancouver’s standard condominium market rose 7 per cent.  Vancouver prices are expected to increase 3.7 per cent in 2011.

Royal LePage’s quarterly House Price Survey shows the annual change of prices for key housing segments in select national markets. Click here to view the chart .

About the Royal LePage House Price Survey

The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast.  This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country.  A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca.  Current figures will be updated following the complete tabulation of the data for the fourth quarter 2010. A printable version of the fourth quarter 2010 survey will be available online on February 4th, 2011.

Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.  Historical data is available for some areas back to the early 1970s.

Canadian Housing Trends - Royal LePage Q4 2010 Market SurveyForecast 

Royal LePage Q4 2010 House Price Survey - Data Chart 

OTTAWA - The Bank of Canada says the economic recovery has gathered strength both at home and abroad, but not enough to encourage it to start raising interest rates from their current ultra-low levels.

The central bank kept its trendsetting overnight rate at one per cent Tuesday, the third time it has done so since September — and gave no clear indication as to when it might start tightening again.

The central bank's governing council, in an accompanying statement to its rate announcement, did cite some reasons why it might want to consider a move on the overnight rate, which influences short-term interest rates offered by lenders.

Firstly, it said the global recovery — notably that in Canada's largest trading partner, the U.S. — is doing better than it had anticipated three months ago, the last time it conducted a comprehensive review of economic conditions.

And secondly, the Canadian outlook has brightened, if only slightly, since October. The bank now projects the economy will expand by 2.4 per cent this year and 2.8 per cent next year — slightly stronger than the 2.3 and 2.6 per cent growth rates it had forecast in October`

The name "Port Credit" came from its roots as a trading post where goods were traded or bought on credit. The earliest reference is on a map drawn in 1757 by La Broquerie at Fort Frontenac, a fort built by the French at the mouth of the Cataraqui River, the site of the city of Kingston.The story of Port Credit is told in the book, "Port Credit, A Glimpse of Other Days" by Verna Mae Weeks, self published.

The heart of Port Credit is its harbour at the mouth of the Credit River. Once a working fishing port and a regional trading centre for grain and other agricultural products, the Port Credit Harbour has seen many roles in the community. A lighthouse was built in 1882 to serve the sailors on Lake Ontario. It served until 1918 and remained standing until destroyed by fire in 1936.

The first permanent structure to be built in the village was the Government Inn (1798–1861), once located on the east bank of the River. Lieutenant Governor John Graves Simcoe had ordered construction of the Inn to serve as a way station for travellers by land and lake, and it was leased to a succession of residents until its destruction by fire. The village plan was laid out in 1834 and for several years, Port Credit was a thriving harbour community. It acquired the status of "police village" in 1909, town status in 1961.

The port was supplanted as a trading centre for shipping by the coming of the railway, but it has always changed with the times. Later in the 19th century, it became known for its stonehooking trade. For years, a unique craft called a "stonehooker" plied the waters of Lake Ontario, near the shore, collecting stones for use in local building trades. Other industries such as the St. Lawrence Starch Works (1889–1989) [1] and the Port Credit Brick Yard (1891–1927) provided employment for many local residents. In 1932 L.B.Lloyd built an oil refinery on the old brick yard site and operated by a succession of operators culminating in its' purchase by a division of Texaco who operated it until its closing in 1985, when Texaco opened a new much larger facility at Nanticoke on Lake Erie. [2] The only remnant is the gas station on the south west corner of Lakeshore and Mississauga Roads. Even the Texaco name is gone as Esso purchased all the Canadian assets of Texaco in 1989.

Important to the war effort, was the large munitions factory in Port Credit staffed almost exclusively by women from around the country. [3] Actually, the Canadian Small Arms plant was at the east end of Lakeview, next to Long Branch, and long way from Port Credit.

The Credit River was an impediment for land travel along the lake. Roads were often privately built, the earliest being made simply by putting logs across the road to prevent the narrow wheeled carts and buggies from sinking into the mud. Early bridges were hard to imagine. A succession of bridges were built, becoming more robust bridges as the village grew in importance. Starting early in the 20th century, particularly after the paving of the Lakeshore Highway in 1915, Port Credit had become an attractive location for business, travelers and people wishing to leave the city of Toronto in summer.

In 1960 the Don Rowing Club moved to the banks of the Credit River, building both a number of buildings over the years as well as many champion Canadian rowers and scullers.

Port Credit did not amalgamate with its neighbouring settlements in southern Peel County when the Town of Mississauga was created from the former Toronto Township in 1968. Port Credit maintained its independence until the City of Mississauga was incorporated in 1974. Today the harbour has been redeveloped into a marina on the east bank and a charter fishing centre and public boat launch facility on the west bank under the lighthouse. Formerly the home of the Port Credit Yacht Club, it is now the heart of a tourist and recreation centre. Port Credit Harbour Marina is the largest public marina in the region. The RIDGETOWN (launched June 24, 1905 as WILLIAM E. COREY, a Lake Bulk freighter) has been a signature structure of Port Credit since June 21, 1974, when she was loaded with stone and, with her cabins and stack still in place, sunk as a breakwater for the Port Credit Harbour. She remains on guard there today.

The tallest structure in Port Credit used to be a 320-foot-tall (98 m) smokestack at the St Lawrence Starch plant which has since been demolished. The felling of the stack drew a very large crowd numbering in the hundreds. The stack falling marked the change of Port Credit into a residential area from the former industrial hub. The status as prime Port Credit landmark for the boaters on Lake Ontario has been taken by apartment and condominium buildings.

The Community 

The Port Credit Arena on the east bank of the Credit River with the Don Rowing Club visible on the west bank.

Life in Port Credit has always focused on community. One enduring example is Port Credit Arena built by community activists. The Port Credit arena was constructed between September 10, 1958 and the official opening on October 4, 1959. Built for $360,000, it is the second covered arena in the current city of Mississauga, the first public arena built, and is the oldest surviving arena in the city. The Arena has been home to countless sporting and social events, a well loved landmark and symbol of community spirit. It is the home of the Port Credit Storm hockey teams.

Another example of the community spirit is the replica of Port Credit's lighthouse. Built by the Lions Club of Credit Valley atop a sewage pumping station, it now acts a symbol of Port Credit, is the home of the local BIA and Tourist Bureau and the logo for many local organizations.

Tourism

With the closing of the St Lawrence Starch Plant in 1990, Port Credit has evolved from an industrial centre into a hub for commerce and tourism.

Port Credit is commonly referred to as Mississauga's "Village on the Lake" along Lake Ontario. The area hosts several festivals and events, notably:

• Waterfront Festival which occurs at the end of June
• The Port Credit In-Water Boat Show. An annual event, to be held August 26–28, 2011 in the Port Credit Harbour Marina. Ontario's largest in-water boat show, featuring both new and used power and sailboats. Land displays of marine services and equipment. Seminar tent. Great fun for the whole family. portcreditboatshow.ca [4]
• Southside Shuffle, an annual three day Blues and Jazz festival in September, featuring over one hundred acts, founded in 1999 by Chuck Jackson, Port Credit native and longtime lead singer of the Downchild Blues Band^[1]
• 2010 marks the 175th Anniversary of Port Credit and a year long series of events are occurring celebrating Port Credit's rich and varied history.

News of activities and events is now available on the net.

Port Credit has numerous shops and restaurants lining Lakeshore Road, in addition to lakeside parks, family neighbourhoods, condominiums and apartments.

Transportation

Port Credit has always benefited from access to good transportation, from the canoe, to lake schooners, railways and roads.

It started as a bustling shipping centre in 1834 with harbour improvements paid for by the government. This reputation was bolstered by the arrival in 1855 of a branch of the Great Western Railway.

Lakeshore Road, formerly Highway 2, runs along the lake and Hurontario Street, formerly Highway 10, runs northwest to downtown Mississauga and Brampton.

Port Credit had access to the nearby Queen Elizabeth Way from the upgrading of the old Middle Road from Highway 27 to Highway 10 to a divided highway in 1931.

Over the years the railway has expanded to three tracks and is an important rail corridor, its prime importance to Port Credit is the GO Train service carrying residents to and from Toronto. The majority of the residences are within walking distance of the Port Credit GO Station just north of the intersection of Lakeshore and Hurontario Street. This transportation hub of Southern Mississauga, linking both the city's bus system and GO Transit, is a busy place for rush-hour commuters during the weekday peak hours.

Waterfront Trail

Port Credit's many waterfront parks are attractive additions and rest points on the Waterfront Trail.

External links

• portcredit.ca - Mississauga's Web Site on the Lake - Community Web Site
• Port Credit - Mississauga's Village on the Lake - Port Credit Business Association Web Site
• Southside Shuffle - Blues and Jazz festival held every September
• Mississauga Canoe Club - Located on the west bank of the Credit River north of Lakeshore Rd. W.
• Don Rowing Club - Don Rowing Club's home on the Credit River
• Paint the Town Red - Canada Day in Port Credit
• Transit Toronto - History of Transit linking Port Credit to Toronto
• Canoeing The Credit River - Port Credit to Orangeville for the hardy
• Historical photos - Pictures of Port Credit in the Mississauga Heritage Collection
• History of Canadian Ports on Lake Ontario - History of Toronto area ports
• Government House Plaque in Memorial Park - Number 33
• portcreditliving.tv - Port Credit Living TV - Video interviews with individuals who live and work in Port Credit
• PortCreditBoatShow.ca - Held annually the last weekend in August in the Port Credit Harbour Marina. Ontario's Largest In-Water Boat Show for both new and used power and sailboats.

 According to figures released today from the Toronto Real Estate Board, monthly resale housing market figures are down. The Greater Toronto REALTORS report that there were 4,395 existing home sales in December- which settles the total for 2010 to 86,170. This is down by 1 % in comparison to 2009.

“Market conditions were anything but uniform in 2010. We went from super-charged sales activity during the first four months of the year, to a marked drop-off in transactions in the summer and then in the fall saw sales climb back to levels that are sustainable over the longer term," said TREB President Bill Johnston.

In terms of average prices for homes being sold in 2010, it settled in at $431,463 – which is a rise of up 9 % compared to the 2009 average selling price of $395,460. The average annual rate of price growth was 5 %.

There were other factors at play for this dip, according to Johnston:"New Federal Government-mandated mortgage lending guidelines, higher borrowing costs and misconceptions about the HST caused a pause in home buying in the summer. As it became clear that the HST was not applicable to the sale price of an existing home and buyers realized that home ownership remained affordable, market conditions improved," continued Johnston.

Demand and weaker prices from the previous year had 2010 starting off strong- at least from a relative standpoint.

"At the outset of 2010, we were experiencing annual rates of price growth at or near 20 per cent. This was the result of extremely tight market conditions coupled with the fact that we were comparing prices to the trough of the recession at the beginning of 2009," reports Jason Mercer, TREB's Senior Manager of Market Analysis.

After a shotgun start, markets and values began to dip moderately as the economic climate took hold.

“Balanced market conditions in the second half of 2010 resulted in more moderate home price appreciation," says Mercer. "Expect the average selling price to grow at or below five per cent in 2011. With this type of growth, mortgage carrying costs for the average priced home in the GTA will remain affordable for a household earning an average income."

Examining sales in terms of different housing types, detached homes accounted for 49 % of all sales. Condominium apartments made up 25 % of the total sales. Other types of housing, like townhomes and semi-detached houses made up the last 26 %. District to district, the breakdown of numbers was different- where condominium apartments comprised 61 % of total sales.

Thanks to low interest rates, and the knowledge that they can’t stay there forever, 2010 ended well for Canadian Real Estate, and more of the same is expected for 2011, according to the Royal LePage House Price Survey and Market Survey Forecast released today.

"Trends in the housing market continue to be driven by the lingering after-effects of the recession," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "Canadians realize that interest rates are unsustainably low and that homes will become effectively more expensive when mortgage rates return to normal levels. We will likely see more price appreciation early in 2011 as some buyer’s complete transactions in advance of anticipated higher borrowing costs."

Soper believes that this is the main impetus pushing people towards purchase sooner, rather than later. “There is anticipation that money is going to become more expensive.”

“Our outlook is skewed now to the positive, and we expect the momentum that the industry carried through 2010 to carry on through 2011. Unit volumes were forecast originally to be very negative for 2011 as recently as October, but in November things began to change.”
With a boost to close out the year in Q4, average home prices nationally, rose between 3.9 and 4.6 % year-to –year, shedding memories of an unimpressive Q3- and were able to return to healthy growth.

Similarly, home values expected to carry on climbing steadily across the country through 2011, with most of the sales activity to take place in the first half of the year.  Soper says, “Typically, in a northern climate, a strong spring will carry the year.”
The introduction of the HST can also take credit for a spike in activity in the early part of 2010.

“2011 is expected to unfold much like 2010, when close to 60 per cent of sales volume occurred in the first half of the year in anticipation of interest rate increases that never materialized. However, housing market activity in the first half of 2011 will be modestly closer to the norm, as last year's phenomenon was exacerbated by mid-year tightening of mortgage accessibility and the introduction of HST in Ontario and British Columbia."

The front runners for growth are most likely situated in Alberta- where some of the only price decreases were seen in 2010. Calgary, in particular, suffered after a sharp correction after years of huge gains, and after sinking oil and gas prices, the regionally heavy sector is expected to start hiring again—which will certainly contributed to the economic health of the city.

Nationally, the average home price is expected to rise 3 % throughout 2011 to $348,600; the actual number of transactions is expected to slide 2%. In Q4, most of the country saw either increases or stability in price. In terms of cities specifically, Winnipeg, Ottawa, Montreal and St. John's topped the list for the most significant increases.  Nationally, the price of detached bungalows went up 4.6%; prices for two –storey homes went up 4.4%; prices for condominiums went up 3.9%.

This year seems to be one of constant anticipation over sales activity reports.  The anxiously awaited August numbers from the Canadian Real Estate Association (CREA), certainly are a great representation of that, and Wednesday they were finally reported.  The good news is that for the first month since March 2010, national resale housing activity improved, showing a seasonally adjusted 4.1 percent increase from the previous month. 

Most of the national sales activity improvement for August was as a result of increased activity in Ontario and British Columbia – both provinces which felt great pains in July with the onset of HST.  Fortunately, over half of all local markets across the country remained stable or saw increases to this month’s seasonally adjusted sales activity. 

With a quick annual look in review, we find the year-to-date transactions are up 2.2 percent versus 2009’s first eight months – partially due to sharp increases in activity during the second half of 2009, and continued momentum into the early months of 2010.  The expectation as a result is the year-to-date transaction statistics, as we work through the final 4 months of 2010, will continue to dwindle in comparison to the year prior – even with a steady market.

CREA’s Chief Economist, Gregory Klump, summarized it this way “The hangover from accelerated home purchases is likely to persist over the rest of the year. Although economic and job growth are expected to be tepid, they will continue to support housing markets.”

Interestingly, even in this ominous economic time, the number of new residential listings grew 1.9 percent on a seasonally adjusted basis from July to August.  That still leaves new listings about 16 percent below the peak numbers since last April.  Average home prices have eased slightly in Alberta and New Brunswick this August, but every other province’s gains exceeded the national increase.  Average price on a year-over-year basis rose or was stable in almost two-thirds of the local markets, but those increases are becoming narrower in the most active and high priced markets.  The average price of homes sold in August was $324,928, which is in line with last year’s figure of $324,843.

As we consider new listings, we also want to assess the number of months of inventory at the current rate of sales activity, to better understand today’s balance between housing supply and demand. August 2010 monthly inventory stood at 6.9 months on a national basis, which is down slightly from the seven months of inventory at the end of July 2010.  Good news for the market – as the market future feels questionable, reducing the inventory helps balance out demand.