looks back on some of the real estate industry’s forecasts for the year ahead. While there have been ebbs and flows, scary headlines and good news too, the forecasts have mainly pointed to strong economic and demographic fundamentals that will continue to support housing activity in 2015.
- The CREA revised its forecast for annual housing sales in December, projecting national activity to reach 485,200 units, a year-over-year increase of 0.8 per cent.
- In December, Scotiabank predicted that interest rates will stay lower for at least another year, with the first increase not due until the beginning of 2016.
- The Bank of Canada, in a report published in December, forecasted a moderation of housing prices in the coming year.
- Economists predicted that the Bank of Canada will not raise interest rates until the last quarter of 2015.
- A poll, published by Reuters in November, forecast that 2015 would see a slowdown in housing construction and prices.
- In November, the OECD forecast that Canadian interest rates will rise in May 2015.
- Data from the BCREA, published in November, predicted that housing starts will be slightly below 30,000 units in the province in 2015, while residential sales are forecast to increase 1.2 per cent to 84,900 units.
- Economists, speaking at the Calgary Economic Development’s 2015 Economic Outlook in November, predicted that there will be a softening of the economy in Calgary and throughout Alberta next year, but were careful not to predict a crisis.
- A report published by CMHC in November said the overall trend for housing starts will continue steady with a dip in 2015, before rising again the following year.
- The annual Emerging Real Estate Trends report, published in October by Urban Land Institute and PricewaterhouseCoopers, said the hot housing market will continue into 2015. The report also said 2015 will see a greater focus on creative solutions for city living.
- CMHC’s third quarter Housing Market Outlook, published in August, said that economic and demographic fundamentals will continue to support housing activity into 2015.
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Stone Mills, Irishtown, New Victoria, Red Earth Creek, Kapuskasing
As 2014 winds to a close,