Weaker Home Sales Predicted
The Canadian Real Estate Association has reduced its sales forecast again for this year.
459,600 units are estimated to change hands in 2010, a decline of 1.2 per cent.
This is the second time the Canadian Real Estate Association has reduced estimates from an optimistic 13.3% increase over 2009 sales figures.
Weaker sales activity in the Spring home buying season is the reason given for the adjustment to sales forecasts.
Frenzied earlier activity by buyers in the first 5 months of the year in advance of new mortgage regulations and the introduction of Harmonized Sales Tax in two of the major housing markets has led to a significant softening in those markets in recent months.
According to one housing economist resale markets are heading from a sellers' market to a buyers' market very quickly.
The Canadian Real Estate Association expects average prices for 2010 to increase 3.5% to $331,600 but to fall by 0.9% to $328,600 in 2011.
The increase in prices this year is attributed to more move-up buyer activity rather than first time buyer activity which means that more expensive homes are being sold this year.
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