BC Forecast to Lead Nation in 2014 Home Sales

British Columbia is projected to post a 14.5 per cent annual increase in home sales activity in 2014 – the largest increase of all the provinces and territories, according to an updated forecast by Canadian Real Estate Association (CREA) released December 15.

The association said in its report, “In British Columbia, historically low mortgage interest rates have helped fuel a broadly based increase in the number of homes changing hands this year, although activity has only recently risen above its 10-year average.”

It added, “In British Columbia, activity is still expected to be held in check by eroding affordability for single-family homes. However, with sales in British Columbia now only at [10-year] average levels, they may climb further before rising interest rates begins to materially reduce affordability.”

Nationally, home sales are now forecast to hit 481,300 units in 2014, an annual increase of 5.1 per cent.

The CREA said: “While this places annual activity eight per cent below the record set in 2007, it marks the strongest annual sales since then.”

The national average home price is now projected to rise by six per cent year over year to $405,500 in 2014, with similar annual percentage price gains in British Columbia.

To read the full report, click here.

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