(OTTAWA) The Canadian Real Estate Association (CREA) on Friday lowered its forecast for home sales for this year and next, as fewer buyers are entering the market.
The association expects 464,239 properties to change hands this year, down 6.8% from last year. It also now forecasts that 516,043 properties will be sold in 2024.
In its April forecast, CREA said it expected 492,674 properties to be sold this year, down 1.1% from 2022. It then projected that a total of 561,090 homes would be sold in 2024.
While the association says it has seen a rebound in sales in most parts of the country, interest rate hikes continue to weigh on borrowing costs and buyer sentiment. The ACI further finds that markets are still hampered by a lack of supply, although prices are not suffering as much as sales.
It now forecasts the national average home price to fall 0.2% from 2022 to $702,409 this year, before rising to $723,243 in 2024.
In its April forecast, it mentioned an average price of $670,389 for this year and $702,200 for 2024.