CREA updates Canada's housing market forecast

 

The CREA updated its forecast for Canada's home sales activity and average home prices.  It estimates over 492,000 houses to be sold this year, declining 1.1% from last year. With no significant declines in nearly a year after interest hikes began, the CREA expects the downward adjustment to sales activity to be over.  In 2023, Canada's average home price forecast is expected to decline by 4.8%, and home sales will increase by 13.9%. The average home price is forecast to recover in 2024 and increase by 4.7% from 2023 to around $702,200, putting it on par with 2022.  Buyers waiting on the sidelines are expected to join the market after the Bank of Canada indicated an interest rate hike pause in January.