In their February 8, 2010 media release, CREA revised its forecast for home sales via the MLS® Systems of Canadian real estate boards in 2010, and extended their forecast to 2011. Here are some excerpts from that release:
“With Canadian economic growth rebounding from the recession, the unusually severe decline in sales activity in early 2009 is not expected to recur in 2010. Annual activity in 2010 is forecast to be well above the previous year’s level as a result.
“… Low interest rates are expected to boost housing demand in the first half of the year, resulting in strong annual sales growth in nearly all provinces in 2010, led by British Columbia and Ontario.
“National home sales activity is expected to remain strong in the first half of 2010, fuelled by low interest rates and homebuyers motivated to avoid the HST before it comes into effect in Ontario and British Columbia. Over the second half of the year, national activity is expected to trend downward as the last of pent-up demand is exhausted, interest rates begin rising, and the HST comes into effect in Ontario and British Columbia.
“Interest rate increases will contribute to weaker national sales activity in 2011. National MLS® home sales activity is forecast to decline 7.1 per cent … in 2011, putting it on par with annual levels reported in 2005 and 2006.”
The full release is available on the CREA website on REALTOR Link®