So what is in store for 2015?? Potentially rising interest rates to declining oil prices? . “The effect of lower oil prices on Canada’s housing markets is something of a wildcard at the moment,” said Gregory Klump, CREA’s Chief Economist. “It’s not clear how far oil prices may drop or for how long they’ll stay down. How that plays out may affect the outlook for interest rates, job growth, consumer confidence, and sentiment about making major purchases.”
“The Canadian housing market remains a story about how sales and prices are still running strong in some areas” said CREA President Beth Crosbie. With mortgage rates remaining at historic lows since the summer, activity has remained stronger for longer than previously expected and has yet to show clear signs of fading. From our personal experience in the market, we can validate that it has NOT STOPPED! Dan was in a multiple offer in December and Dale was in a multiple offer on January 5th! Our Snap Stats indicate that ALMOST ALL markets in December were a Seller’s Market with the exception of West Vancouver & New Westminster– Balanced Market, and one Buyer’s Market in Maple Ridge!
As a result, the forecast for annual sales in 2014 and 2015 has been upwardly revised. Almost all of the upward revision to national activity in both years stems from the current strength and momentum of sales across most of British Columbia and much of Ontario.
- To add to your reading enjoyment and for those that wish to delve a little deeper into the future (sort of like a crystal ball), we have included the RE/MAX 2015 Housing Market Outlook Report which indicates Canada’s average residential sale price is projected to increase two to three per cent in 2015. You can also find out:
- The average residential sale price in Canada in 2014
- Projected average residential sale prices in 2015 for 10 Western Canadian cities
- What is expected to happen with inventory in 2015