The Canadian Real Estate Association is forecasting the country will wrap the year with fewer home sales than it previously predicted as it says tight supply conditions will continue to push housing costs up.
The association is forecasting about 656,300 homes will change hands this year, an almost 19 per cent increase from 2020 levels, but an almost four per cent decrease from the 682,900 it predicted earlier this year.
The association says the record-setting number it is predicting is a downward revision because sales fell more rapidly than predicted this spring.
CREA says the national average home price is now expected to reach $680,000 this year, up 19.9 per cent from last year. The earlier forecast had predicted an average price of nearly $678,000 for 2021.
Canadian home sales are forecast to fall by 12.1 per cent to around 577,000 in 2022, while prices are expected to rise by 5.6 per cent on an annual basis to reach about $718,000 next year.
The new forecast came as CREA says month-over-month home sales edged back by 0.5 per cent to 48,379 in August. Compared with a year ago, home sales last month were down 14 per cent.