B.C.’s residential sales activity via the Multiple Listing Service (MLS) is expected to drop next year, according to the Canadian Real Estate Association (CREA).
In a revised resale-housing forecast issued Friday, CREA predicted sales activity using the MLS system would decline 14.9% next year to 61,900 units compared with 2010. That decrease coupled with a similar one in Ontario could drive the average national house price down 1.3% to $326,000.
“Housing demand and supply is stabilizing,” said Gregory Klump, CREA’s chief economist. “That’s good news for home buyers who will feel less hurried to make an offer than they did when transitory factors ignited housing demand in early 2010.
“It’s also good news for home sellers who will feel more confident about price stability now that the housing market has become balanced.”
Across Canada, CREA said home sales activity via the MLS system was weak at the beginning of the third quarter but “gained traction” as the quarter progressed.
Still, weaker than expected activity caused CREA to reduce its 2010 sales prediction to 442,200 units, which is a 4.9% decline compared with 2009.
“Economic uncertainty is likely to keep potential homebuyers in a cautious mood, so the continuation of low and stable interest rates is unlikely to cause housing demand or prices to swell.”