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Single Family Home Summary
Sales activity in the single-family sector is expected to grow this year at a rate of 2.4 per cent, slower than the 2013 growth of eight per cent. While the pace of growth is expected to be slower in line with easing demand conditions, it is important to note the number of resale transactions will remain relatively high. In addition, increasing affordability pressures may cause many buyers to turn to condominiums and surrounding towns for their housing needs.
Price gains will continue to encourage new listings growth. With less lower-priced single family product available and new stock coming in at higher prices, we can expect to see price gains in the single family market. However, easing in market tightness will place less upward pressure on prices this year compared to 2013.
Overall, single-family price growth is expected to ease from nearly eight per cent growth in 2013 to 3.8 per cent this year.
With affordability expected to erode, we anticipate that demand for condominium apartment and townhouse-style units will improve at a rate greater than in the single-family sector. However, the rise in both starts and completions in the new home segment will limit the upward price growth this year.
Overall condominium apartment and townhouse prices are expected to increase by 5.8 and 4.75 per cent respectively this year.