Housing price growth expected to ease in second half of this year
Housing prices and sales have far exceeded expectations in the first half of this year, but improving supply levels will ease pressure on niche growth moving into the second half of 2014, said CREB® in its 2014 mid-year forecast update.
When looking at the full forecast, price growth for the typical home is expected to increase by eight per cent on an annual basis due to strong gains in the first half of the year, said CREB® Chief Economist Ann-Marie Lurie.
“Calgary is benefiting from growth in the energy sector. This has supported employment growth and has helped attract record levels of net migrants to the area last year,” she said. “These factors, combined with rising wages and low interest rates, produced exceptional sales growth in the resale market, starting in the second half of 2013 and carrying on into the year.”
For the first half of 2014, sales activity in Calgary increased to 13,926 units, a 13.6 per cent increase compared to 2013. Although mid-term risks regarding energy access and price volatility remain, current economic conditions are expected to support annual residential sales growth of 5.5 per cent this year.
Read more about this years’ forecast in the Friday edition of the CREB®Now real estate news.