Homebuyers in Ottawa can expect to pay an average four per cent more for a home in 2007, according to the latest forecast of the residential real estate market from RE/MAX.

The firm's 2007 housing outlook predicts the average price of a resale home in Ottawa will reach $268,300 next year. It says sales volumes should be on par with 2006, at about 14,000 units.

RE/MAX surveyed 17 cities and predicts the average resale price of a home in Canada will increase five per cent next year. An influx of new listings will moderate the rise in house prices, leading to more balanced conditions in the real estate market.

"Strong economic fundamentals continue to fuel healthy residential real estate activity in markets across the country, despite what is happening south of the border," Michael Polzler, executive vice president and regional director of RE/MAX Ontario-Atlantic Canada, said in a statement. "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."

Calgary and Edmonton will continue to lead in terms of rising prices, with increases of 10 per cent in 2007.

"Affordability is one of the more serious issues facing today's real estate consumer, yet purchasers remain steadfast," says Elton Ash of RE/MAX of Western Canada. "Buyers are simply getting more creative in their approach to homeownership, considering alternatives to single-detached homes such as semi and row housing, town houses, and condominium apartments. They're also looking at peripheral areas located close to the city centre that provide a better bang for the buck."