In its October forecast, CREA says sales this year should reach 483,233 homes, an increase of less than 0.1 per cent from 2005. It foresees sales slowing by 4.8 per cent in 2007, to 460,190 units.
Price increases, which averaged 11.4 per cent in 2006, will ease to an average 6.0 per cent in 2007. Housing markets in Western Canada will remain tight, but price increases will remain below ten per cent in all provinces.
"Weaker U.S. economic growth is good news fore Canadian interest rates, as slowing Canadian economic growth will keep mortgage rates low and the housing market on a solid footing," says CREA chief economist Gregory Klump. "Home sales activity and household spending stand to benefit if the Bank of Canada cuts interest rates to shore up Canadian economic growth."
In Ontario, the association sees home sales declining 3.6 per cent to 187,745 units and average selling prices climbing by 3.9 per cent to $290,500.
