The Canadian Real Estate Association Has Updated Its Housing Forecast

According to the Canadian Real Estate Association’s mid-December update of its housing forecast for 2014 and 2015, sales in Canada are expected to increase by 5.1 per cent over 2014 to a total of 481,300 units.

The Canadian Real Estate Association says it now expects the average price of a home in Canada to increase by six per cent to $405,500 by the end of 2014, with a further increase of 0.9 per cent in 2015 to $409,300. Ontario, on average, is expected to see an increase of 1.3 per cent over next year.

“There are a number of upside and downside risks to the forecast,” said the Canadian Real Estate Association in its update. “In British Columbia and Ontario, activity is still expected to be held in check by eroding affordability for single family homes. However, with sales in British Columbia now only at average levels, they may climb further before rising interest rates begins to materially reduce affordability. Sales in Ontario may also remain stronger than expected should new listings continue to come onto the market at higher levels in places and in market segments where a lack of supply in recent years has led to pent-up demand.”

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