November 17, 2009

OTTAWA – The Canadian Real Estate Association is reporting that National Multiple Listing Sales will likely exceed forecasts for 2009 and 2010. Sales activity will reach 460,200 units in 2009 and 492,300 units in 2010. The 2009 projection, should it come to fruition, would represent a 6.6 per cent increase over 2008’s results. In August, the CREA had estimated sales activity for 2009 would be 423,600 units. It’s the second time the agency has raised its guidance this year, after increasing it in May when they were predicting a 14.7 per cent decline for 2009.
"Significant weakness in activity and average prices seen in late 2008 and earlier this year is not expected to repeat in 2010, so 2010 will look a lot better by comparison," said CREA chief economist Gregory Clump.
Price forecasts were also increased. Average home prices should climb 4.2 per cent in 2009 – that’s up from the 1.5 per cent increase which had previously been estimated.
Prices are expected to rise in all provinces – from 1.5 per cent in British Columbia to 13.1 per cent in Newfoundland – except Alberta, where prices are forecast to fall three per cent.