Housing Market 'Surprisingly Strong'

Even with economic storm clouds on the horizon, Canada's real estate market hums along with high price appreciation and record-breaking sales.

Supported by booming energy sectors, Saskatchewan, Manitoba and New Brunswick are experiencing the highest house price gains, RoyalLePage Real Estate Services said in its latest survey.

There were no signs of the traditional seasonal slowdown and "surprisingly strong" price increases and "unwavering demand" in the last quarter of 2007, said Royal LePage president Phil Soper.

Nationally, detached bungalows increased to an average of $337,555, up 11.6 percent, while standard two-story houses rose to $399,738, a jump of 11.3 percent. Average condominiums were up to $240,395, a climb of11.7 percent for the year.

Regina and Saskatoon lead the country, with bungalows rising more than 50 percent, while prices rose 43 percent in Saint John, New Brunswick, and 21 percent in Winnipeg. Double-digit gains were recorded in Edmonton, Vancouver and Victoria.

A less frenetic real estate market is expected as the economy starts to slow due to less demand for Canada's exports and manufacturing job losses.

"With the U.S. economy likely to contract modestly in the first half of the year, Canada's economy will brush up against bigger ice floes this year," said Sal Guatieri, the Bank of Montreal's senior economist.

BLACK-FOCUSED SCHOOL DISAPPOINTS PREMIER

Ontario Premier Dalton McGuinty is "disappointed" with the Toronto District School Board's decision to establish a controversial "black-focused" school.

The board narrowly approved a motion to open Canada's first school of its type to reflect the needs of its 30,000 black students.

"This is a student achievement issue and the board is acting on its right to set up an alternative school," Education Minister Kathleen Wynne said.

High dropout rates and underachieving students are problems not just in Toronto, so creating such a school isn't the answer, Conservative education critic Elizabeth Witmer said.

"I don't support it," McGuity said, adding: "The best way for us to educate our children is to bring them together so they can come together, learn together and grow together."

News in brief

Hundreds of flights were canceled Friday at Toronto's Pearson airport and schools and businesses were closed after a snowstorm from the U.S. Midwest roared into eastern Canada, dumping about eight inches of snow. The storm then moved into Quebec and the Maritimes while crews continue to restore power to thousands of people in Prince Edward Island after an ice storm last Monday.

Montreal Canadiens fans are rallying behind hockey legend Guy Lafleur, who was arrested on accusations he gave contradictory testimony at his son's bail hearing. Mark Lafleur faces some 20 criminal charges, including sexually assaulting a minor. The accusations concern Guy Lafleur's testimony that his son was respecting a court-ordered curfew while in his parents' custody.

Facts and figures

The Canadian dollar has been showing some volatility - climbing above and falling below parity with the U.S. currency. The dollar was worth $1.0059 U.S. Friday while the U.S. greenback returned99.41 cents Canadian, before bank exchange fees.

The Bank of Canada's key interest rate is steady at 4 percent while the prime lending rate is 5.75 percent.

Canadian stock markets were mixed, with the Toronto Exchange index up at 13,206 points Friday and the TSX Venture Exchange lower at 2,566 points.

Lotto 6-49: (Wednesday) 1, 20, 21, 23, 40 and 41; bonus 12. (Jan. 26) 1, 5, 11, 37, 44 and 47; bonus 36. Super 7: (Jan. 25) 4, 9, 10, 17, 26, 32 and 33; bonus 27.

Regional briefs

Slower sales and the higher-valued Canadian dollar are blamed by computer maker Dell for closing its call center that employs 900 people in Edmonton. An "unspecified" number of 1,500 call center jobs are being cut in Ottawa along with ending plans to hire another 1,200 there.

Beatle Paul McCartney is again speaking out against the annual Canadian seal hunt. The music legend is calling on animal lovers to pressure the European Union to proceed with a ban on seal products, a huge market for the hunters. McCartney and his former wife, Heather Mills, went to the Gulf of St. Lawrence two years ago to protest against the hunt, calling it "senseless brutality."

Pooch Jake can't wait to get back to home in warm San Diego after an extended visit in the frozen countryside of rural Alberta. The German shepherd-cross went missing six months ago while on a trip and owner Brenda Hemsing thought she'd never see him again. He's flying home after being found sleeping under an abandoned bus in Ponoka near Edmonton still wearing his identification tags.