17 March 2014
This year CREA expect 463,700 sales, which is below the 475,000 forecasts in December, though still above previous year’s 457,893 sales.
“Slightly higher mortgage rates may offset the increase provided by stronger economic and job growth, restraining the pace of sales activity,” – noted Gregory Klump, CREA’s chief economist.
Last month sales through the MLS system rose by 0.3% from January and by 1.9% from the previous year.
The national average home price was $406,372 – it’s 10.1% higher than a year ago. Such increase was caused by a rise in Vancouver sales.
According to TD Bank economist Diana Petramala, the Canadian real estate market is moderating, though it doesn’t affect prices yet. She believes the prices will react soon. “In general, home sales are expected to remain flat, while an increase in listings will reduce the prices during the next few years,” – Petramala added.
From the mortgage prospective – we are ready for a spring market with 5 years fixed rate as low as 2.94% (we can also offer 2.99% on rentals!) and variable mortgages at Prime – 0.65% or 2.35% as of today.