The Canadian Real Estate Association (CREA) has recently updated its forecast for home sales activity via the Multiple Listing Service systems of Canadian real estate boards and associations in 2019 and extended its outlook to include 2020.
CREA projects that national home sales will drop by 1.6% to 450,400 units this year, marking the weakest annual sales since 2010 and the lowest per capita sales activity in almost two decades. CREA expects BC to account for much of the projected decrease, along with a further expected decline in Alberta, but that should be offset by the continuing strength in Quebec and a small gain in Ontario.
For next year, CREA’s forecast is that national sales will rise by 2% to 459,400 units. CREA expects the rise in all provinces except Newfoundland and Labrador, with a partial recovery in BC and Alberta combined with further gains in Quebec contributing most to the gain in national activity.
Meanwhile, CREA projects that the national average home price will slightly decline (by 0.2%) to around $487,000 this year, following a 4.1% drop last year, which was the largest in almost 25 years.
For next year, CREA’s forecast is that the national average price will edge higher by 0.8% to $490,800, reflecting further average price gains in Ontario, improving sales activity in BC and Alberta, and the combination of higher sales and average prices in Quebec.