Real estate association revises sales forecast down as prices continue to rise

Dated: June 17 2021

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High vaccine take-up and falling COVID caseloads are cooling the country’s fevered pandemic real estate market, prompting the Canadian Real Estate Association (CREA) to adjust its still record-breaking sales forecast down slightly for 2021.

But there’s no price relief in sight, says CREA, which is predicting a slightly steeper climb of 19.3 per cent to an average price of $677,775 this year, up from its original March forecast of a 16.5 per cent rise this year to $665,000.

Citing fallen month-over-month sales in April and May, the association said Tuesday there is “anecdotal evidence of offer fatigue and frustration among buyers.”

It has revised its sales forecast to 23.8 per cent year over year growth for 2021, anticipating 683,000 homes will change hands, instead of the 702,000 transactions it had earlier expected. Ontario and British Columbia are expected to see the most pronounced slowdown.

Canadian home sales fell 7.4 per cent and new listings dropped 6.4 per cent month over month in May. 

The Toronto Region Real Estate Board reported that the average price of a home or condo in the region hit a record $1.11 million in May, a 28.4 per cent year-over-year gain. 

CREA found that while Ontario had the largest year-over-year price gains, month-over-month growth has also slowed most here, compared to other parts of the country where growth has continued to accelerate.

“It feels like the sense of urgency that was there even a couple of months ago to find some place to ride this pandemic out is starting to fade,” said senior economist Shaun Cathcart.

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Robert Piperni

Robert started in Real Estate over 20 years ago as a Real Estate Investor, building a portfolio of real estate. His passion for real estate and his experience as a licensed mortgage agent has helped h....

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