The CREA Lowers Housing Forecast Amid “Holding Pattern” for Home Sales
The Canadian Real Estate Association (CREA) has adjusted its Housing Market Forecast for the remainder of 2024, predicting slower growth than previously anticipated. CREA now forecasts 468,900 homes will be sold in 2024, a 5.2% increase from last year. This is a downgrade from earlier projections of 6.1% in July and 10.5% in April.
CREA’s Revised Forecast for 2024
The latest forecast reflects what CREA describes as a “holding pattern” for the national housing market, with sales and prices remaining relatively stable. While home sales in September saw a modest 1.9% increase month-over-month, the average price of a home was $669,630, up just 2.1% from last year.
CREA now expects the average home price to increase by only 0.9% in 2024, reaching $683,200, down from its earlier forecast of a 2.5% increase.
Housing Market Forecast – Buyers Taking Their Time
Despite three consecutive rate cuts from the Bank of Canada, buyers remain cautious. Davelle Morrison, a Toronto based real estate agent, noted that buyers seem hesitant to jump back into the market, with many taking a wait-and-see approach.
With new listings up 4.9% in September, there is optimism that a sharper rebound may come next spring. CREA forecasts a 6.6% increase in home sales in 2025, with average prices expected to rise by 4.4%
Original Article – Canadian Mortgage Trends – The Canadian Press – October 15, 2024
