According to an updated 2013 forecast from The Canadian Real Estate Association (CREA), national sales activity in Canada has held fairly steady after gearing down last August in the wake of changes to mortgage rules that took effect July 9, 2012.
The CREA forecast, issued March 15th, indicates that although the number of MLS® sales has slowed since mid-2012, activity is expected to improve later this year, fuelled by stronger economic growth and continuation of near record low interest rates. CREA now predicts that national MLS sales will reach 441,500 in 2013, just 2.9% behind the strong sales activity seen in 2012. On a provincial level, both Alberta and Manitoba are expected to see sales gains this year.
In 2014, CREA forecasts that national sales activity will show slow but steady improvement, rebounding by 5.5% to 461,200 units sold. Sales in the province of BC are expected to show the strongest gain next year. Canada’s national average house price is forecast to edge back up 1.7% in 2014. Many major markets are already seeing near-record prices for resale homes.
“Canada’s employment, economic growth and net migration are all expected to build momentum this year and through 2014,” said John Geha, President of Coldwell Banker Canada Operations ULC. “These strong economic fundamentals, along with readily available mortgage financing, and interest rates at near historic lows will continue to support Canada’s stable housing market.”