CREA Market Update
As of March 2014, the Canadian Real Estate Association (CREA) expected that interest rates in the Canadian housing market would increase in the second half of the year. However, with the release of its resale housing forecast, CREA now predicts that interest rates will hold firm until closer to the end of the year, resulting in affordable home ownership opportunities for the remainder of 2014.
On a national scale, sales are forecast to reach 463,400 units in 2014, a 1.2 per cent increase from 2013. The average national home price is now projected to reach $404,300 in 2014, a 5.7 per cent year-over-year gain. Regional forecast highlights include:
- British Columbia is forecast to make the largest contribution to an increase in national sales, with a year-over-year increase in activity of 8.3 per cent;
- Annual sales in Alberta are projected to increase by 3.4 per cent;
- Sales in Saskatchewan, Manitoba, and Ontario are expected to remain flat with 2013 levels; and
- Sales in Quebec, New Brunswick, Nova Scotia and Newfoundland are projected to fall by 1.7, 4.2, 5.1 and 2.6 per cent, respectively.
Looking to 2015, CREA predicts that national resale activity will represent an increase of 0.9 per cent over 2014, with 467,800 units. The average national home price is expected to increase by 0.7 per cent, to $407,300. Predictions are based on the country’s economic outlook, which points to further improvement in jobs and incomes.