Sales and price forecasts for residential property in Canada have been updated, following the market performing better than expected.
According to propertywire.com, the Canadian Real Estate Association (CREA) has predicted that the number of properties sold will reach 449,900 in 2013 and prices are expected to rise 3.6 per cent, making the average property price $376,300.
CREA forecasts that in 2014, 465,600 properties will be sold, an increase of 3.5 per cent compared to its previous forecast. It says this is due to the Canadian property market becoming stronger, thanks to job and income growth, reports ibtimes.co.uk. In addition, mortgage interest rates have only risen slightly, which has also helped maintain sales activity.
The national average price of property is forecast to rise by 1.7 per cent next year, making the average house price $382,800.
British Columbia is the area expected to perform the best with a 6.7 per cent increase in house sales predicted. The majority of other regions are expected to see their sales figures rise by between two and four per cent.
Gregory Klump, CREA's chief economist, said that in some areas, it is likely that inventory levels and sales will be related: "The environment for home prices in Quebec, New Brunswick and Nova Scotia will likely be shaped by ample inventory levels relative to sales.
"The balance between the two indicates that buyers have an abundance of listings from which to choose in those provinces, which could keep pricing prospects in check until sales draw down inventories."
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Laura Varley