2016-17 Housing Forecast

The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity in 2016 and 2017.

Sales in the Lower Mainland of BC have braked more abruptly than anticipated, reflecting buyer uncertainty following the introduction of the new property transfer tax on Metro Vancouver foreign home buyers.

By comparison, transactions in Ontario have held steady in recent months near record levels and have yet to show signs of cooling.  

Taking these factors into consideration, sales forecasts have been revised upward for Ontario and downward for British Columbia.

British Columbia is still forecast to post the largest annual increase in activity this year (+14.6 percent) notwithstanding that much of its strength is in the rear-view mirror at this point.

Year-over-year average home price in BC showed tentative signs of moderating. As a result, the average home price forecast is revised lower for B.C., reflecting a bigger than anticipated decline in higher-priced single detached home sales in the Lower Mainland region.