OTTAWA, Nov. 15, 2011 /CNW/ - The Canadian Real Estate Association
(CREA) has made a small revision to its forecast for home sales
activity via the Multiple Listing Service® (MLS®) Systems of Canadian
real estate Boards and Associations for 2011 and 2012.
Activity came in broadly in line with expectations across much of the
country in the third quarter of 2011 with the exception of Ontario.
Sales there came in stronger than anticipated in a number of regions
over the summer, but were held aloft mostly by Toronto activity as the
third quarter ended.
Stronger than anticipated sales in Ontario pushed up national activity
in the third quarter, and prompted CREA to raise its annual sales
forecast for 2011 from 0.9 per cent to a revised 1.4 per cent.
"The continuing strength of home sales activity in the face of ongoing
financial market volatility speaks volumes about the confidence of
Canadians in our housing market, said Gary Morse, CREA's President.
"Interest rates look like they'll remain low at levels that are
friendly to the housing market for some time to come, and that's good
news for Canadian home sales activity and the overall economy."
CREA forecasts that national sales activity in 2012 will ease by 0.5 per
cent to 451,200 units. This represents a small upward revision of
CREA's previous 2012 sales forecast, and reflects expectations that
Canadian interest rates will remain low until well into next year.
Forecast sales for 2011 and 2012 remain roughly on par with the annual
average for activity over the past ten years.
The national average price has evolved as CREA expected, with average
home prices in Vancouver moderating compared to levels in the first
half of the year. Vancouver sales of multi-million dollar properties
have returned to more normal levels after having shattered a number of
monthly records this spring.
CREA's national average home price forecast for 2011 is little changed
at $362,700, representing an annual increase of 7.0 per cent. In 2012,
the national average price is forecast to hold even with the 2011.
"A number of factors will keep Canada's housing market in check as
interest rates remain low," said Gregory Klump, CREA's Chief Economist.
"These include tightened mortgage regulations, high household debt
levels, together with slower economic and job growth. That said, with
global economic growth expected to remain fragile but positive,
employment levels and income growth in Canada should remain supportive
for the housing market."
"Headline news about economic uncertainty has put only minor dents in
consumer confidence. How confidence evolves depends on how global
turmoil plays out over the coming months. Should global economic
headwinds weigh more heavily than expected on Canadian economic
prospects, the federal government and the Bank of Canada have made it
clear they stand ready to take flexible and measured responses as
appropriate. That's encouraging from the standpoint of the Canadian
economic and housing market prospects."
SOURCE Canadian Real Estate Association
For further information:
Pierre Leduc, Media relations
The Canadian Real Estate Association
613-237-7111 or 613 884-1460