Canadian property prices and sales to increase in 2014

Photo: Jeff Smith

The CREA's 2014 forecast predicts that sales will climb 3.7 per cent, although most of that increase will be driven by a comparatively weak start to 2013, which is not expected to repeat in 2014.

Sales are projected to reach 458,200 units for 2013, an increase of 0.8 per cent from last year.

British Columbia is forecast to post the strongest sales increase in 2014 of 8.4 per cent, again thanks to the relatively weaker 2013, while most other provinces are forecast to see deals rise between 2 and 4 per cent.

Average prices have remained "firmer than expected" in the last year, mostly due to a rise in the share of national sales among more active and pricier markets as compared to last year.

The national average home price is projected to rise by 5.2 per cent to $382,200 overall in 2013, with similar gains in the Prairie provinces, Ontario, and Newfoundland and Labrador. Smaller gains are projected in other provinces.

“Most housing markets are well balanced, including many large urban centres,” said Gregory Klump, CREA’s Chief Economist. “Housing price gains are always stronger in places where supply is tight relative to demand, such as we’re seeing in Calgary and in parts of Southern Ontario including the low rise market in Toronto. Prospects for price appreciation will be limited in parts of Quebec and some areas in the Maritimes, where competition among sellers has increased.”