The Canadian Real Estate Association (CREA) predicts Canadian homes sales may drop by 1.1 per cent this year as oil prices decline and affect consumer confidence, particularly for 457,700 provincial units countrywide.
National average home price is also set to slightly grow, according CREA, by 2 per cent to $416,200 this year.
CREA initially predicted home sales to be over 0.8 per cent last year or 485,200 units. However, the association changed its outlook and lowered it to take into consideration oil price drops, the Global News reported.
Alberta, a major oil producer, will suffer lower home sales by 19.3 per cent this year. CREA also predicted sales in Saskatchewan, Manitoba, and Newfoundland to dip by 11.2 per cent, 2.2 per cent and 1 per cent, respectively.
“It is encouraging to see possible signs that the worst may soon be over in Calgary and Saskatchewan,” Royal Bank of Canada economist Robert Hogue said in a note. “In particular, we point to the drop in new listings in these markets as a positive development that, if sustained, would suggest to us that panic is not setting in and that activity may be close to reaching a floor.”
CREA also noted that other provinces will see continuous higher sales and relatively stable or higher average sales prices, like British Columbia which is projected to have an increase 4.9 per cent, Nova Scotia by 3.7 per cent, and Quebec and New Brunswick by 2.5 per cent.
Meanwhile, CREA said Ontario may see a 1.9 per cent boost in sales levels from 2014, while Prince Edward Island sales are projected to jump by 1.4 per cent. 

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