CREA Updates and Extends Canada Resale Housing Forecast

The balance between supply and demand continues to tighten


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. This has led to a rapid shift in market balance in Alberta, and to a lesser extent, Saskatchewan. Annual sales in these provinces are expected to come in well below elevated levels posted last year, with small declines in average residential prices in 2015.


Additionally, the Canadian dollar has weakened further against the U.S. dollar, mortgage rates have declined and the U.S. economy has strengthened since CREA’s last forecast, which taken together are expected to benefit economic and job growth in other provinces. Accordingly, CREA has upwardly revised its forecast for sales activity for much of the rest of the country.

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.


By contrast, average prices in Quebec and the Atlantic region are expected to remain relatively stable, as sales deplete elevated levels of supply.

On balance, the forecast for national sales has been revised lower, reflecting downward revisions to the outlook for sales in Alberta. National sales are now projected to reach 475,700 units in 2015, representing an annual decline of 1.1 per cent. This would place annual activity slightly above but still broadly in line with its 10-year average (Chart A).

British Columbia is projected to post the largest annual increase in activity in 2015 (+4.9 per cent) followed closely by Nova Scotia (+3.7 per cent), Quebec (+2.5 per cent), New Brunswick (+2.5 per cent), Ontario (+1.9 per cent), and Prince Edward Island (+1.4 per cent). These numbers represent upward revisions to CREA’s previous forecast.

Alberta is expected to post the largest annual decline in sales this year (-19.2 per cent), though the trend for activity is expected to begin recovering from a weak start to the year as consumer confidence recovers. Sales are also forecast to decline on an annual basis in Saskatchewan (-11.2 per cent), and Manitoba (-2.2 per cent).

The national average home price is now forecast to rise by two per cent to $416,200 in 2015. Only British Columbia (+3.4 per cent) and Ontario (+2.5 per cent) are forecast to see gains in excess of the national increase.


Prices are projected to remain largely stable elsewhere, with increases or decreases of around one per cent or less this year. The exception is Alberta, where average price is forecast to fall by 3.4 per cent, reflecting a pullback in sales for luxury properties compared to homes in more affordable price segments.

In 2016, national sales activity is forecast to reach 482,700 units, representing an annual increase of 1.7 per cent. Much of the annual increase reflects an anticipated recovery for sales activity in Alberta and Saskatchewan in line with expected economic improvement in those provinces.

Strengthening economic prospects are expected to result in improving sales activity in other provinces where sales have struggled, keeping prices more affordable amid ample supply. Meanwhile, anticipated mortgage rate increases are expected to keep activity in check in markets where homes are already less affordable and prices have continued rising.


The national average price is forecast to rise by a further 1.9 per cent to $424,100 in 2016. Given an ongoing shortage of supply for single family homes in and around the Greater Toronto Area, price growth in 2016 is forecast to be strongest in Ontario (+2.5 per cent) and Alberta (+2.4 per cent).

Gains of around two per cent are forecast for British Columbia and Manitoba, and around one per cent for Saskatchewan and Quebec. Average home price in the Atlantic region is forecast to hold steady in 2016.


For more information, please contact:

Pierre Leduc, Media Relations
The Canadian Real Estate Association
Tel.: 613-237-7111 or 613-884-1460
E-mail: pleduc@crea.ca



PLEASE NOTE:

The information contained in this news release combines both major market and national MLS® sales information from the previous month.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.
MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 111,000 REALTORS® working through some 90 real estate Boards and Associations.
The information contained in this report has been prepared by The Canadian Real Estate Association drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed
However,REAL ESTATE SNATCH is not liable for the use or misuse of the site's information. The information displayed on www.realestatesnath.com is for reference only.

15 comments:

Ceiba Realty and Development said...

I really enjoy simply reading all of your weblogs. we provide real estate in belize at affordable prices. for more info visit our website.

miladrealestate said...

Excellent and informative article. You have good knowledge of the real estate. Your article has everything which I want. Palo Alto ca homes for sale.Good job.

Laura Bush said...

I am very thankful to you that you have shared this information with us. I got some different kind of knowledge from your web page, and it is really helpful for everyone. Thanks for share it. Courtenay home for sale

Unknown said...

I will share it with my other friends as the information is really very useful. Keep sharing your excellent work. Read more info about Real estate agents in North Vancouver

aaronnssd said...

I generally want quality content and I found that in your post. The information you have shared about we buy houses austin.....is beneficial and significant for us. Keep sharing these kinds of articles here. Thank you.

GOLDEN VISA PROPERTIES said...

Very good information, You have provided excellent information for us. It is valuable and informative for everyone. Keep posting always. I am very thankful to you. properties algarve

CragoMoves said...

You wrote this post very carefully. The amount of information is stunning and also a gainful article for us. Keep sharing this kind of articles, Thank you. house clearance cornwall

HomeMegaManagement said...

Excellent job, this is great information which is shared by you. This info is meaningful and factual for us to increase our knowledge about it. about sale house new york So please always keep sharing this type of information.

Taksim Real Estate Consultancy said...
This comment has been removed by the author.
Taksim Real Estate Consultancy said...

This information is meaningful and magnificent which you have shared here about the Business . I am impressed by the details that you have shared in this post and It reveals how nicely you understand this subject. I would like to thanks for sharing this article here.Buy Apartment in Istanbul site.

dkg said...

Great job for publishing such a nice article. Your article isn’t only useful but it is additionally really informative. Thank you because you have been willing to share information with us.Port Alberni Foreclosures site.

Winsold said...

Excellent post. I really enjoy reading and also appreciate your work. This concept is a good way to enhance knowledge. Keep sharing this kind of articles, Thank you.Virtual Tour Real Estate Toronto

Shivam said...

A home buying guide for first-time buyers with current information and calculators and every step of the buying process. Buying Your First Home in Canada

Shivam said...

Use our Canadian Creditworthiness calculator to check your credit score and also get tips to boost your credit score. Creditworthiness Calculator Canada

Shivam said...

Ratetrade.ca is your one-stop shop for doing a quick search and easy comparison of prevailing mortgage rates in Canada to make smart financial decisions. Compare Best Mortgage Rates in Canada

Get Real Estate Tips

About Us

Get Free Email Updates to your Inbox!

Follow Us On Social Media

REAL ESTATE SNATCH is the independent real estate blog of Samir Safadi, Sales Representative of West-100 Metro View Realty Ltd, brokerage it is dedicated to covering Real Estate News, digital culture, social media and technology, providing analysis of trends, Market Data , reviewing new development. Offering Real Estate services resources and guides. Services are provided to prospective buyers and sellers of real estate by Samir Safadi, Sales Representative, West-100 Metro View Realty Ltd, brokerage, duly registered in the province of Ontario, under Real Estate and Business Brokers Act, 2002 (REBBA 2002) and Member in good standing with

 

 

©Copyright 2009-2022 REAL ESTATE SNATCH All Rights Reserved Registration on or use of this site constitutes acceptance of our

 

User Agreement | Disclaimer | Comment Policy | Privacy Policy | About Us | Contact Us | Site Map

Search This Blog