British Columbia is forecast to post the largest year-over-year increase in home resales activity of all the provinces, with demand currently running at a multi-year high, according to the Canadian Real Estate Association’s latest update released September 15.
Sales activity for the province is projected to reach 81,600 units in 2014, an increase of 11.9 per cent compared with 2013, said the association.
The overall 2014 average price in BC is forecast to be $566,500, an increase of 5.4 per cent versus 2013. That is the highest average price and the second-highest increase of all the provinces.
Across Canada, sales are now forecast to reach 475,000 units in 2014, an increase of 3.8 per cent compared with 2013. This is upwardly revised from CREA’s forecast of 463,400 sales published in June.
The average Canadian house prices is projected to be $405,000, a rise of 5.9 per cent over 2013.
Mortgage interest rates are expected to edge higher as Canadian exports, business investment, job growth and incomes improve, said the association. This should benefit housing markets where demand has been softer but prices have remained more affordable. Sales in relatively less affordable housing markets such as Vancouver are likely to be more sensitive to an increased in fixed mortgage rates.
