February 17, 2010
Canadian Real Estate Association Revises 2010 Forecast Upwards
Did you know that the Canadian Real Estate Association has revised its forecast for home sales upward this year, citing better economic conditions?
CREA forecasts 527,300 sales this year, up 13.3 per cent from 2009 levels. The previous forecast called for a 7 per cent increase.
The national average home price is forecast to rise 5.4 per cent in 2010 to a record $337,500.
But next year will start to see the impact of higher interest rates, with sales forecast to decline 7.1 per cent in 2011. That would put next year on par with levels reported in 2005 and 2006, according to the realtors’ association.
Year 2011 is when Canada’s realtors are expecting prices to slip 1.5 per cent.
“A downward trend in national sales activity combined with an increase in listings will result in a more balanced market,” said CREA chief economist Gregory Klump.
