CREA eyes nine-year sales low in 2019
January 7, 2019
Sales of existing homes in Canada will fall to a nine-year low in 2019, according to a revised and more bearish forecast from the Canadian Real Estate Association (CREA). The association called for an 11.2 per cent decline in sales over the total course of 2018 at 458,200 units, but said they will drop another 0.5 per cent in 2019—the lowest level since 2010.
“In 2019, home sales activity and prices are expected to be held in check by recent policy changes from different levels of government, in addition to additional interest rate increases,” CREA stated.
The national average home value will rise a modest 1.7 per cent in 2019 to $496,800 after dropping 4.2 per cent in 2018 compared to 2017.
British Columbia will endure a “mild recession” in 2019 in its once high-flying housing market. The province is coming off of a year of steep declines, according to the British Columbia Real Estate Association—2018 sales down 23.6 per cent and dollar volumes plunging 23 per cent compared to a year earlier. The B.C. sales downturn could last another three years, analysts say, and lead to a drop in the construction of both detached and condominium-style homes.