The Canadian housing market is forecast to slow later in 2014, according to the latest Economic and Financial Market Outlook report from RBC Economics. Construction activity is expected to allow for the development of 184,000 units in 2014, below the 188,000 units started in 2013.

In addition to building activity, RBC also predicts that sales activity will slow through 2014. Following harsh winter weather, home sales began to recover in February 2014. However, as of April, sales remained three per cent below the national average reported in 2013.

RBC forecasts a 3.5 per cent gain in home prices through 2014 with home sales only slightly higher than 2013.  As the market cools, RBC anticipates that investors will shift their focus from residential real estate to non-residential projects and developments.