The Canadian Real Estate Association has predicted that house prices will remain stable throughout 2015 in its current forecast report. But sales are expected to vary considerably according to region.
475,700 units are expected to be sold this year, down 1.1% on 2014, but it is in line with the country’s 10-year average. British Columbia is looking to be the strongest region, with a predicted growth of 4.9%, followed by Nova Scotia (3.7%), Quebec and New Brunswick (both 2.5%), Prince Edward Island (1.4%) and Ontario (1%). But sales are expected to decline in Alberta by 19.2%, and by 11.2% in Saskatchewan and 1.3% in Manitoba.
The average price of a home across the nation is expected to rise by 2% to $416,200, with British Columbia and Ontario again bettering the average, at 3.4% and 2.5% respectively. This is balanced out by an expected 3.4% fall in Alberta, mainly due to the decline in sales of luxury properties, while most other regions will remain roughly stable.
Economic growth looks to result in improved sales activity, particularly in previously struggling provinces, including Alberta. But mortgage rate increases will check activity where steady price rises have already made homes less affordable.
Looking further ahead, the average price is expected to rise by an additional 1.9% in 2016, bringing the price of the average Canadian home to $424,100. The Greater Toronto area is expected to continue suffering a shortage of one-family homes, resulting in the highest price rises in 2016 to be in Ontario (2.5%) and a recovering Alberta (2.4%).
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