CREA revises forecast due to strong activity in B.C.

CREA has revised its national sales forecast to just a 1.3% decline in sales activity, a small improvement from its previous forecast in February, which said there could be a 1.6% decline in sales activity.

An unexpected surge in multi-million-dollar home sales in Greater Vancouver has caused the association to also revise its forecast for the national average home price. CREA’s Chief Economist Gregory Klump said in a statement the national average should rise by 4% in 2011 to $352,500 and by nine-tenths of a per cent in 2012 to $355,800.

"The extent to which high-priced sales activity in Vancouver will pitch up the average price locally, for British Columbia and nationally will likely diminish in the next couple of months in line with a seasonal increase in national activity," Klump said. "That said, foreign investment in Vancouver residential real estate is showing no signs of slowing, so it seems likely to remain a prominent market feature for some time."

In 2012, CREA forecasts sales activity will increase 2.6%, up to 452,500, bringing it more in line with the 10-year average for national sales activity.

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