RealtyBizNews - Real Estate Marketing and Beyond
Real Estate Marketing & Beyond
Home » World Real Estate » International » Canadian Real Estate Market Forecast Updated by CREA

Canadian Real Estate Market Forecast Updated by CREA

By Allison Halliday | June 28, 2018

The Canadian Real Estate Association (CREA) recently updated its forecast for home sales activity through the Multiple Listing Service® (MLS®) for this year and 2019. While many parts of the country are still seeing strong housing fundamentals, some housing markets are struggling.

Business meetings of real estate brokers and company presidents to select a model to build a housing estate in writing and presenting to state organizations
Business meetings of real estate brokers and company presidents to select a model to build a housing estate in writing and presenting to state organizations.

Last year, a new mortgage stress test was announced, and which was expected to prompt homebuyers to rush through their purchases before the new rules came into effect this January. Consequently, fewer transactions were anticipated for the first half of this year, but apparently, the response to the policy change was stronger than originally thought. Home sales for last December when seasonally adjusted, reached their highest level ever recorded before falling off sharply at the start of 2018. Actual sales figures for March, April and May are usually the most active months in a year, but the combined sales for these months fell to a nine-year low. Another factor is possible interest rate increases later this year and into next year, but despite this, home selling activity is expected to strengthen during the second half of 2018, albeit modestly.

The CREA took these factors into account and now they have revised their national sales forecast downwards. Now it is predicted to decline by 11%, to 459,900 units in 2018. It is a decrease that reflects weaker sales in Ontario and BC, provincial policy measures, high home prices, and housing market uncertainty, as well as new mortgage stress tests and supply shortages.

In 2018 the national average home price is predicted to be $499,100, which is almost the same as the previous forecast and is a decline of 2.1% compared with last year. However, only the average price in Newfoundland and Labrador is expected to see home prices fall by that much, with more than half of all provinces forecast to see increases. The average price reduction nationally is because fewer transactions are anticipated in Ontario and in British Columbia.

Next year, national sales are predicted to increase modestly but will still be at lower than levels recorded from 2014 to 2017. Part of the increase is due to the anticipated recovery in home sales during the second half of this year because of deferred purchases in the first half of the year in British Columbia and Ontario. The effect is expected to fade during next year as interest rates continue to increase.

Allison Halliday is a Realty Biz News contributing writer. She handles International Real Estate and is a seasoned blogger.
  • Advertise with RealtyBizNews - Media Kit
  • real estate digital marketing
  • Get Digital Marketing Training
    right to your inbox
    All Contents © Copyright RealtyBizNews · All Rights Reserved. 2016-2023
    Website Designed by Swaydesign.

    Warning: Trying to access array offset on value of type bool in /nas/content/live/realtybiznews/wp-content/plugins/schema-and-structured-data-for-wp/admin_section/common-function.php on line 2494

    Warning: Trying to access array offset on value of type bool in /nas/content/live/realtybiznews/wp-content/plugins/schema-and-structured-data-for-wp/admin_section/common-function.php on line 2495

    Warning: Trying to access array offset on value of type bool in /nas/content/live/realtybiznews/wp-content/plugins/schema-and-structured-data-for-wp/admin_section/common-function.php on line 2496

    Warning: Trying to access array offset on value of type bool in /nas/content/live/realtybiznews/wp-content/plugins/schema-and-structured-data-for-wp/admin_section/common-function.php on line 2494

    Warning: Trying to access array offset on value of type bool in /nas/content/live/realtybiznews/wp-content/plugins/schema-and-structured-data-for-wp/admin_section/common-function.php on line 2495

    Warning: Trying to access array offset on value of type bool in /nas/content/live/realtybiznews/wp-content/plugins/schema-and-structured-data-for-wp/admin_section/common-function.php on line 2496
    linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram