CREA releases updated resale housing forecast

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The Canadian Real Estate Association recently updated its quarterly forecast for home sales activity and extended it through the next year.

The update was made via the Multiple Listing Service Systems of Canadian real estate boards and associations for this year and extended through 2013  with national home sales activity during that time expected to remain on par with the 10-year average for annual activity.

"CREA's updated housing market forecast reflects recent and prospective trends for provincial home sales activity coupled with prevailing provincial economic outlooks," said Gregory Klump, CREA's chief economist. "Risks to the Canadian economic outlook remain elevated owing to the European sovereign debt quagmire, but the continuation of low interest rates is the silver lining."

National resale housing activity is projected to reach 458,800 units this year, which would mean an annual increase of 0.3 percent compared to the 457,305 sales in 2011.

With housing costs on the rise in Canada and stricter lending practices making it difficult for families to obtain a home loan, nationwide interest in suites is growing, according to a report from the Vancouver Sun. For many families, however, buying is still a more logical financial option than renting, so consumers should review their finances and assess the market carefully before signing a rental agreement.

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