The Canadian Real Estate Association believes that some of the hottest markets, including British Columbia and Ontario, will begin to see a slower pace of sales as prices continue to rise; and that the national pace of sales will also ease.
Sales in Alberta, Saskatchewan and Newfoundland & Labrador are expected to struggle to regain traction this year, resulting in continuing softness for home prices. In most other provinces, home sales activity and average prices should improve as their economies strengthen and interest rates remain low.
Disparity between markets is highlighted by the CREA report with BC seeing the strongest rise in activity (up 20 per cent) while Alberta will see the biggest decline (down 11.5 per cent.)
Ontario is likely to be impacted by lack of supply with market activity rising 5.2 per cent. The oil decline is expected to see activity decline 4 per cent in Saskatchewan and 1 per cent in Newfoundland & Labrador.
Elsewhere, there are gains expected for Manitoba (7.1 per cent); Quebec (5.1); and Nova Scotia (5.8).
The CREA says that consumer confidence remains strong with some of the markets experiencing lower activity this year expected to rebound modestly in 2017.
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An updated forecast for Canada’s housing market calls for resales to rise 6.1 per cent for 2016 compared to last year but that the pace will ease in the second half of the year.