Canada’s real estate association (CREA) has revised its home price forecast for this year.
It’s suggesting prices will jump an average of 19 per cent this year, even as activity cools across the country, pointing to a shortage of properties for sale which continues to drive competition and push prices higher.
CREA predicts the national average home price for the year will increase to $677,775. That forecast is up from its previous outlook of a 17 per cent increase over last year. The average price rose 13 per cent from 2019 to 2020.
Home resales declined, and price inflation slowed across the country in May, with potential buyers priced out of the market or taking a break after repeatedly losing out to higher bidders.
The Royal Bank of Canada (RBC) recently revised its price forecast higher.
“Home prices haven’t peaked yet in Canada,” said RBC senior economist Robert Hogue, noting policy makers hadn’t done much to cool the market.