Canada's home values are expected to show continued growth in 2008 even as the hot pace of sales cools, predicts a major real estate firm.

The Re/Max housing outlook report for 2008, which examined 18 markets, predicts that average home prices will rise about six per cent to $321,000.

Edmontonians will see the smallest increase in average home prices while St. John's, N.L. should see the biggest jump next year.

"Western markets were first out of the gate in 2007, but those in the East followed suit," said Michael Polzler, executive vice-president and regional director for Re/Max in Ontario and Atlantic Canada, in a news release issued Wednesday.

"By year-end, some of the most impressive gains in home sales will be realized in Ontario and Atlantic Canada. Solid economic fundamentals, including billions of dollars in capital projects, a positive unemployment outlook, and solid consumer confidence levels will propel markets forward.

"A slow and steady growth trajectory, minus the peaks and valleys experienced in 2007, is forecast for next year."

Edmonton and Saskatoon led the country in price appreciation this year:

  • Saskatoon, 49 per cent;
  • Edmonton, 31.5 per cent;
  • Regina, 21 per cent;
  • Calgary, 20 per cent;
  • Sudbury, Ont., 20 per cent;
  • Kelowna, B.C., 19.5 per cent;
  • Saint John, N.B., 17 per cent;
  • St. John's, N.L., 12 per cent; and
  • Greater Vancouver, 10 per cent.

Here are the predicted leaders for 2008:

  • St. John's, 12 per cent;
  • Regina and Kelowna-Central Okanagan, nine per cent,
  • Hamilton-Burlington, Ont., and Saint John, New Brunswick, eight per cent; and
  • Greater Vancouver, seven per cent.

For 2007, the average house price is expected to be $303,000 -- a nine per cent rise over 2006 or an absolute increase of $25,000.

This year is expected to set a sales record of an estimated 545,400 units, compared to 483,770 units in 2006.

In 2008, Re/Max predicts sales will retreat to about 500,000 units.