The momentum that was established in Canada’s real estate market in late 2013 will continue through 2014, according to a new report released today by Royal LePage.
The brokerage predicted continued house price increases as the market moves toward the busy spring season and dismissed talk of a soft landing in the New Year, describing it as “misguided.” (Tweet this)
“In addition to normal demand, housing prices in Canada this year will be influenced by buyers who put off purchase plans in the very soft spring of 2013,” said Phil Soper, president and CEO of Royal LePage.
“We expect no [soft] landing, no slowdown, and no correction in the near-term. Conditions are ripe for as strong a market as we saw in the post-recessionary rebound of the last decade.”
In the report, titled “House Price Survey and Market Survey Forecast”, the brokerage said the average price of a home in Canada increased between 1.2 per cent and 3.8 per cent in the fourth quarter of 2013. The price of a standard two-storey home rose 3.6 per cent year-over-year to $418,282 while the price of a detached bungalow climbed to $380,710, an increase of 3.8 per cent year-over-year.
“We expect a market tipped decidedly in favour of sellers for the first half of the year, after which we project a shift to a more balanced market,” said Soper in a press release.
Soper added that a buoyant Canadian economy, supported by increased business spending, improving employment prospects and a boost in exports influenced by the US economic recovery, will positively affect the real estate market.
He also noted that the Canadian government is not likely to intervene in the housing market in 2014. The brokerage does not anticipate significant increases in interest rates or additional restrictions on first-time buyer’s access to insured mortgage financing this year.
Stay tuned for more regionally specific coverage from the new Royal LePage report!