Home prices, sales to drop this year: CREA - Metro US

Home prices, sales to drop this year: CREA

The price of a Canadian home is expected to decline by eight per cent this year, before rising by about one per cent in 2010, says a forecast by the Canadian Real Estate Association.

“We are caught in a cycle where consumer confidence has been eroded by job losses, and consumer confidence is an essential ingredient for housing sales activity,” said CREA president Calvin Lindberg.

Ontario prices are expected to fall to about $279,100, down from $302,354, while British Columbia will see the biggest hit with a fall of 10.9 per cent.

Sales activity is also forecast to fall by 16.9 per cent this year, but realtors are predicting a rebound of 9.9 per cent in 2010, marked by a second-half acceleration based on a recovering economy.

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