CREA cuts housing market forecast for 2024 despite June sales rising

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The Canadian Real Estate Association says it is scaling back its housing market forecast for the remainder of the year amid increased levels of supply and a quiet spring spurred by fewer interest rate cuts expected in 2024.

The association said Friday it anticipates a gradual rebound in the national housing market, with 472,395 properties forecast to trade hands this year to mark a 6.1 per cent increase from 2023 — down from its forecast in April of a 10.5 per cent gain.On a year-over-year basis, the number of homes that changed hands in the month fell 9.4 per cent, reflecting stronger activity in spring 2023. But CREA said sales ticked up 3.7 per cent on a month-over-month basis.

CREA said it is now forecasting just a 2.5 per cent annual increase in the average price of a home for 2024 to $694,393. That's down from its previous forecast of a 4.9 per cent increase. "For the Bank of Canada, this will be considered good news as the market is not standing in the way of further easing at this point."

"I wouldn't say to any buyer, 'Wait,' but I would say take your time, and there's lots of inventory out there at the moment."

 

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