The Canadian Real Estate Association (CREA) recently updated its forecast for Canada’s 2014 home sales, predicting sales and prices will rise compared to 2013.

Which province will have the most home sales?

For the sixth consecutive year, annual sales in 2013 reached nearly 450,000 units. Last year, sales remained the strongest in western Canada, while sales in eastern Canada were softer. For 2014, CREA has projected national sales to reach 475,000 units, an increase of 3.7%.

British Columbia is forecasted to have the greatest gain in sales, 8.4% for 2014. The other provinces are expected to experience slight gains between 2% and 4%.

National average home price

For 2013, CREA says the national average home price increased 5.2% to $382,200. The Prairies, Ontario, Newfoundland, and Labrador experienced this kind of gain, while other provinces saw smaller gains.

For 2014, CREA predicts that the national average home price will increase another 2.5%, hitting $391,100. Alberta is forecasted to experience the greatest average price gain of 3.4%.

“Most housing markets are well balanced, including many large urban centres. Housing price gains are always stronger in places where supply is tight relative to demand, such as we’re seeing in Calgary and in parts of southern Ontario including the low rise market in Toronto. Prospects for price appreciation will be limited in parts of Quebec and some areas in the Maritimes, where competition among sellers has increased,” said Gregory Klump, CREA’s chief economist.

It looks like CREA and RealNet are in agreement about low-rise housing in Toronto. Supply is low and pricing is on the rise.