OTTAWA –
The Canadian Real Estate Association says it is scaling back its housing market forecast for the remainder of the year amid increased levels of supply and a quiet spring spurred by fewer interest rate cuts expected in 2024.
It says it anticipates a gradual rebound in the national housing market, with 472,395 properties forecast to trade hands this year to mark a 6.1 per cent increase from 2023 — down from its forecast in April of a 10.5 per cent gain.
The average price of a home sold in June amounted to $696,179, down 1.6 per cent from June 2023, as the association says it is now forecasting just a 2.5 per cent annual increase for 2024 to $694,393. That’s down from its previous forecast of a 4.9 per cent increase.
On a year-over-year basis, the number of homes that changed hands in June fell 9.4 per cent, reflecting stronger activity in spring 2023, but CREA says sales ticked up 3.7 per cent on a month-over-month basis in June after the first Bank of Canada rate cut.
CREA senior economist Shaun Cathcart says it wasn’t a “blow the doors off” month for sales, but the month-over-month figures reflect some early signs of renewed life for the national hosing market.
There were about 180,000 properties listed for sale across Canada at the end of June, up 26 per cent from a year earlier but still below historical averages of around 200,000 for this time of the year.
This report by The Canadian Press was first published July 12, 2024.