The Canadian Real Estate Association (CREA) has revised its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations for 2011 and 2012.
Sales activity and home prices remained strong in the second quarter. As a result CREA revised its national forecasts for sales activity and average price a little higher. Sales are expected up be up around 1% over last year and reach 450, 800 in 2011. A decrease in sales is now expected for 2012 with about 447,700 units due to affordability going down as prices rise. Overall increases in British Columbia and Ontario have offset the decrease in Quebec, Manitoba and Newfoundland.
“While there had been some talk of potential interest rate increases, that hasn’t happened,” said Gary Morse, CREA President. “In fact, mortgage interest rates have actually come down, and are now expected to remain low for the remainder of this year and into 2012. It’s a great opportunity to purchase a property with financing at very favourable rates.”
The average home price is expected to rise to #363,500 or 7.2% in 2011. This represents and increase from the previous estimates as it reflects the continued growth in Vancouver and the acceleration of the Ontario, specifically Toronto condo market. Home prices are now expected to stabilize in 2012.
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