The Canadian Real Estate Association has revised its 2010 forecast for existing home sales, projecting housing activity will be roughly six per cent lower than its previous estimate. By contrast, it has elevated its national-average home price forecast from a 1.6-per-cent increase to 3.5 per cent.
Going into the autumn, housing activity is now expected to reach 459,600 sales, representing an annual decline of 1.2 per cent, while the national-average home price is forecasted to climb to $331,600, compared to the association’s June projection, forecasted at $325,400.
Less sales during the crucial spring home-buying season in Canada’s four most active provincial markets prompted the association’s revision, while more interest-rate hikes could further hamper sales.
The association projects that sales activity in 2011 will decline 7.3 per cent, with annual sales totalling 426,100, as the country experiences weaker economic growth and consumer spending.
Although the association has forecasted price gains in most provinces during 2011, the national average price is forecast to ease by 0.9 per cent to $328,600.