The Canadian Real Estate Association has updated and extend its resale housing forecast, saying that annual sales in some provinces are expected to come in well below the higher levels from last year and that small declines in prices are expected.
“The further decline in oil prices since CREA’s last forecast has shaken consumer confidence in the Prairies, pushing potential homebuyers to the sidelines and prompting more homeowners to put their home on the market,” said the Canadian Real Estate Association in a press release. “This has led to a rapid shift in market balance in Alberta, and to a lesser extent, Saskatchewan.”
The forecast for national sales has been lowered to 475,000 units, which is a decline of 1.1 per cent over last year.
The Canadian Real Estate Association continued, “The balance between supply and demand continues to tighten in British Columbia and Ontario. These are the only two provinces where tight supply relative to demand is expected to result in average price gains that surpass inflation this year.”