CREA now expects sales via its Multiple Listing Service to hit 439,900 units, representing an annual decline of 1.6%. In 2012, national sales activity should rebound by about 3% to reach 453,000 homes, it said.
Average home prices are expected to rise by 1.3% to touch $343,000 in 2011 and $347,000 in 2012.
CREA expects that the market will regain traction after dipping in the second quarter as the economic recovery, jobs, incomes and consumer confidence rebound."Even though mortgage interest rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity. Strengthening economic fundamentals will keep the housing market in balance, which will keep home prices stable," said Gregory Klump, CREA chief economist.
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