According to RBC Economics, western Canada will see the highest activity in resale real estate in 2014 and into next year. In the rest of Canada, however, sales are expected to remain flat.
The Canadian housing market needs to be examined on a city-by-city or in selected local and regional areas since conditions in the market vary from one place to the next. The hotter markets like Vancouver, Toronto and Calgary cannot be thrown into the same basket as the cooler Canadian real estate markets like Halifax, Montreal and Ottawa.
Due to increased population growth in the west and a strong economic outlook, it's expected that the volume of home resales will rise at a fast rate. Sales are forecasted to stay flat or may even decline slightly in the Atlantic provinces and in central Canada.
In both Ontario and Alberta, home prices are expected to continue rising in areas where there is more of a seller's market. Prices will only go up moderately in other areas of these provinces where conditions are more balanced.
In Calgary, there has been a surge of new home listings added to the market. As a result, the market is becoming more balanced here in the city. We're starting to move out of a seller's territory, which means that price growth should also start to level off soon. In July, there was a rise of 14.7% for new listings when compared to the numbers that were recorded at the same time last year. A total of 2,666 new units were added to the Calgary real estate listings in July.
This is excellent news for potential home buyers that have been putting off their home shopping to avoid bidding wars and disappointment. With a balanced market, the buyer has more control over the purchase then he would have in a seller's market.