CREA Forecast February 2007
MLS® Homes Sales Activity Forecast to Stay Strong
Prices to continue to rise
For Immediate Release
OTTAWA - February 19, 2007 - National MLS® home sales activity will remain high this year and in 2008, according to The Canadian Real Estate Association (CREA).
Natinoal sales activity is forecast to ease slightly but remain above $450,000, which is near the strongest levels on record. Annual activity is forecast to rise this year in Saskatchewan and Manitoba and inch lower in other provinces.
The national MLS® residential average price is forecast to rise modestly over the next 2 years. Resale housing markets will become more balanced in all provinces, but will remain tighter in Western provinces where annual price increases will be the largest.
"Mortgage rates are slow and will remain that way" said CREA Chief Economist Gregory Klump. "Employment is high and will continue to rise. Consumer sentiment is upbeat. Incomes are rising. The combination of those factors will keep the housing market on a strong footing over the next couple of years".
"Annual price increases will generally be smaller than last year in all provinces", added Klump. "Saskatchewan is forecast to buck the trend by posting a bigger annual average price increase this year because sales activity has outstripped growth in new listings, which has caused the resale housing market to tighten there."
The CREA forecast estimates the annual MLS® average home price in Canada will be $244,700 in 2005, up 8.2 per cent from 2004. The national average price at the end of the first quarter of 2005 was $238,800.
"Low mortgage interest rates will continue to enable many homebuyers to finance more expensive homes. This, combined with fewer sales of lower priced homes due to rising prices and the resulting lack of lower-priced inventory, will keep the MLS® average home price well above where it stood last year."
CREA MLS® Residential Market Forecast:
| 2006 |
2006 |
2007 Forecast |
2007
Annual |
2008 Forecast |
2008
Annual |
|
| Canada | 483,609 | -0.04 | 475,965 | -1.6 | 466,355 | -2.0 |
| British Columbia | 96,671 | -9.1 | 92,130 | -4.7 | 90,345 | -1.9 |
| Alberta | 74,189 | 12.6 | 72,210 | -2.7 | 70,775 | -2.0 |
| Saskatchewan | 9,140 | 10.0 | 9,315 | 1.9 | 9,170 | -1.6 |
| Manitoba | 13,018 | 2.0 | 13,140 | 0.9 | 12,845 | -2.2 |
| Ontario | 194,793 | -1.1 | 194,285 | -0.3 | 190,430 | -2.0 |
| Quebec | 72,520 | 2.6 | 72,235 | -0.4 | 70,485 | -2.4 |
| New Brunswick | 7,125 | 4.2 | 7,045 | -1.1 | 6,990 | -0.8 |
| Nova Scotia | 10,577 | -3.3 | 10,315 | -2.5 | 10,065 | -2.4 |
| Prince Edward Island | 1,492 | 3.0 | 1,355 | -9.2 | 1,340 | -1.1 |
| Newfoundland | 3,537 | 10.2 | 3,435 | -2.9 | 3,415 | -0.6 |
For more information:
Gregory Klump
CREA Chief Economist
613-237-7111 ext. 2247
gklump@crea.ca
Bob Linney
CREA Communications Director
613-237-7111 ext. 2270
rlinney@crea.ca