Home prices projected to increase by 8% in Ontario: CREA

Toronto, December 18 (CINEWS): Alberta, Saskatchewan and Newfoundland and Labrador are forecast to see average home prices decline by 2.5 per cent, 1.2 per cent and one per cent respectively in 2016, according to the Canadian Real Estate Association (CREA). The downturn in the oil industry may be one of the major reasons for the decline.
British Columbia will be the only province this year where average home prices rise faster (+11.5 per cent) than the national average. The rise in Ontario’s average price (+8.0 per cent) is forecast to be roughly in line with the national increase. CREA says that low interest rates will assist sales but that the federal government’s recent reforms to mortgage lending rules will have a negative effect beyond its intended targets in the Vancouver and Toronto areas. New mortgage rules will also likely reduce sales activity in Calgary once they take effect early next year.
The forecast for national sales in 2015 has been revised higher, reflecting stronger than anticipated activity in B.C. and Ontario. National sales are now projected to rise by five per cent marking the second strongest year on record for home sales in Canada.
British Columbia is projected to post the largest annual increase in sales activity in 2015 (+21.4 per cent), while home sales in Ontario are projected to rise by 9.3 per cent. The increase would in all likelihood be higher were it not for a shortage of low rise homes available for purchase in and around the Greater Toronto Area (GTA).
Sales in Quebec and New Brunswick are forecast to rise by 4.8 per cent and 5.4 per cent respectively while activity in Prince Edward Island, having benefitted from the lower Canadian dollar, is expected to be up 18.8 per cent from 2014 levels.
CREA is one of Canada’s largest single-industry trade associations, representing more than 111,000 REALTORS® working through 90 real estate Boards and Associations.

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