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sales and prices are expected to still grow over the next two years, albeit at
a slower pace, says the national organization that represents realtors.
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The
Ottawa-based Canadian Real Estate Association says sales are forecast to reach
463,700 in 2014 which would represent a 1.3% increase from 2013. The national
average home price is forecast to be $397,000 in 2014, a 3.8% increase from a
year earlier.
CREA
said a particularly tough winter and the fact consumers pushed purchases
forward into the summer of 2013 to take advantage of low rate pre-approved
mortgages may have contributed to sluggish sales to start off 2014.
But
the group, which represents about 100 boards across the country, says the
market should bounce back with mortgage rates heading down.
“I
expect fixed mortgage rates will edge marginally higher in the second half of
2014 as evidence confirms an anticipated pick-up in economic growth,” said
Gregory Klump, chief economist with CREA, in a statement. “Marginally higher
mortgage rates are likely to counterbalance that lift provided by stronger
economic and continuing job growth and restrain the momentum of sales
activity.”
By
2015, sales are expected to reach 469,400 units which would be a 1.2% increase
from a earlier. By 2015, the national average price is forecast to be $401,400
which would be another 1.1% increase.
Meanwhile,
CREA also released results for February sales which were up 0.3% from a
January. The increase ended five straight months of declines but sales are
still off 9.3% from the peak.
“Sales
in February rebounded in some of the smaller local markets where activity was
impacted by harsh winter weather in January,” said Laura Leyser, president of
CREA, in a release.
Actual
not seasonally adjusted sales were up 1.9% in February from a year ago with
most of the gain coming from increased sales in British Columbia’s lower
mainland and to some extent Calgary.
The
average home sold for $406,372 in February which was a 10.1% increase from a
year ago. CREA emphasized the year-over-year gain was impacted by the lack of
activity in some of the country’s most expensive markets in 2013, in particular
Vancouver.
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