Sales Activity History
and Forecast by CREA
The Canadian Real Estate Association (CREA) has revised its forecast for housing activity via the Multiple Listing Service® (MLS®) Systems of the Canadian Real Estate Boards and Associations for 2011 and 2012. According to the update, sales activity in Canada is expected to reach 441,100 units this year. Although this represents a 1.3 per cent decrease from 2010, it is still a slight improvement from the 1.6 per cent decline forecast in February, as activity in British Columbia was stronger than expected in the first quarter of 2011. CREA also expects national sales activity to rise by 2.6 per cent to 452,500 units in 2012.
"Home buyers expect mortgage interest rates to rise and are mindful of their current and future debt levels. They're doing their homework to better understand how their mortgage payments and family budget might change down the road before they make an offer," Gary Morse, the President of CREA explained. "That said, even though mortgage rates have increased recently, they remain very attractive and are keeping financing within reach for many homebuyers. Some housing markets are hotter than others, so buyers and sellers would do well to consult their local REALTOR® to understand how supply, demand and prices are evolving in their housing market."
Despite unsurprising activity in the first quarter of 2011, luxury property sales in Greater Vancouver went up unexpectedly, pushing average sale prices upwards both for the province and nationally. This also made the average price forecast revision necessary.
CREA also predicts that home sales activity will regain momentum after declining in the second quarter as economic recovery continues.
Find out more about the updates at CREA's official site.