CTV

Canadian Real Estate Association has trimmed its sales forecast for this year even as home sales in February rose slightly compared with the previous month.

In a new forecast of Canada’s closely-watched housing market, the real estate association says 2014 is off to a slower start than many years but there’s no sign of a crash and predicts activity will pick up.

Comment: I would not call things slow these days… even with the winter from hell, we have seen strong sales and ever-rising prices.

CREA sees resales trending higher this spring, riding the wind of slightly lower mortgage rates, but levelling off in the second half of 2014 when rates are expected to firm slightly.

Comment: And yet, BMO just brought the 2.99% mortgage back.

However, even then, the expanding economy will likely continue to support housing, the association said Monday in an update to its December forecast.

The association now forecasts sales in 2014 will total about 463,700 units, slightly below the 475,000 projection in December, but still above last year’s 457,893 sales.

“Marginally higher mortgage rates are likely to counterbalance the lift provided by stronger economic and continuing job growth, and restrain the momentum of sales activity,” said Gregory Klump, the association’s chief economist.

Sales through the Multiple Listing Service in February were up were up 0.3% from January and up 1.9% compared with a year ago.

The national average price for a home sold last month was $406,372, up 10.1% from a year ago, boosted by a pick up in sales in the pricey Vancouver market.

Comment: Wow… I remember being amazed when the national average broke $300,000. And that was not that long ago!

February’s increase in home resales broke a streak of five straight monthly declines.

Comment: Of course, ever month drops after the strong fall market. Now they will all rise as we move into the spring market. Then they will fall through the summer, rising in the fall, only to fall again. Same as every year.

TD Bank economist Diana Petramala says Canada’s housing market is moderating, although that hasn’t been reflected in prices – as yet. She says that will likely happen next.

“Overall, sales are likely to continue at their current, sustainable pace while rising listings (of homes for sale) will help deflate price pressures over the next few years,” Petramala said.

Comment: Only if listings rise. And that is not looking likely here in Toronto.

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Contact Laurin Jeffrey for more information – 416-388-1960

Laurin Jeffrey is a Toronto real estate agent with Century 21 Regal Realty.
He did not write these articles, he just reproduces them here for people who
are interested in Toronto real estate. He does not work for any builders.
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