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Activity on the Canadian real estate market continues to decline.
Following a 2.3% dip in national home sales in November, there’s now been a 12.6% decline in the past year.
The updated projection for 2018 sees a projected decline of 11.2% to 458,200 units.
Home sales over Canadian MLS® Systems fall 2.3% in November 2018, adding to October’s 1.7% drop. They’re still up from their low point this spring but stand below monthly levels posted from 2014 through 2017: https://t.co/5JajYNc3Zn #CREAstats pic.twitter.com/asTdNwF7dZ
— CREA | ACI (@CREA_ACI) December 17, 2018
Despite a supportive population and job growth, home sales are at their lowest level in five years.
In 2019, activity and prices are expected to be held in check thanks to recent policy changes from different levels of government, as well as additional interest rate increases.
British Columbia and Ontario will account for the biggest share of national sales decline in 2018, while Alberta, Saskatchewan, Manitoba and Newfoundland will also fall to multi-year lows.
In contrast, Quebec and the Maritimes are showing historically strong real estate activity.
"Despite supportive economic and demographic fundamentals, national home sales have begun trending lower due to this year’s new mortgage stress-test." Our Chief Economist Gregory Klump has the details. #CREAstats. pic.twitter.com/jrqYkVRIS3
— CREA | ACI (@CREA_ACI) December 17, 2018
Price-wise, the national average to the end of the year is projected to at $488,600, down 4.2% from 2017.
Once again, the dip in the national average is largely due to decreased activity in B.C. and Ontario.
That price is projected to rebound a bit in 2019, as the Canadian Real Estate Association expects a 1.7% increase to $496,800.