Canadian home buyers and sellers can look forward to a continuing strong market, according to a national forecast. In March 2014, The Canadian Real Estate Association (CREA) updated its MLS® forecast to the end of 2014, and extended its positive outlook to 2015.
According to CREA, national resale activity started 2014 at lower levels, compared to previous years. This reflects payback for stronger activity last summer and fall when buyers with pre-approved mortgages rushed to purchase before their lower pre-approved rates expired. It also likely reflects slower activity due to an exceptionally tough winter in most parts of the country.
Since there may be some pent-up demand, and with mortgage rates having edged lower, CREA’s outlook calls for home sales to trend higher heading into the spring, and be further supported over the second half of 2014 by a widely anticipated pick-up in Canadian economic growth.
- Sales are forecast to reach 463,700 units in 2014, representing an increase of 1.3% over 2013. This would national activity to within fairly short reach of the 450,000 mark for the seventh straight year
- In 2015, national activity is forecast to edge up a further 1.2% to 469,400 units.
- The national average home price is forecast to rise by 3.8% to $397,000 in 2014
- Similar sized gains are forecast in the provinces of British Columbia, Alberta, and Ontario. Modest changes in average prices are forecast for all other provinces this year.
- The national average price is forecast to rise a further 1.1% in 2015 to $401,400.
Of course, this is just the ‘big picture’ based on national trends. Real estate sales activity and pricing can vary significantly between different markets, within communities, and even from street to street. To get more detailed insights on your local market, contact your local Coldwell Banker sales professional, and let’s talk real estate!