Posted February 06, 2019 06:02:25Canada’s real-estate market is expected to rebound in the first quarter of 2020 as home prices rise and sales expand, according to a new report from the Canadian Real Estate Association (CREA).
CREA released its quarterly report on Tuesday, which shows a 0.4 per cent drop in sales for the year.
The numbers are good news for Canada’s most vulnerable housing market, where the average house price has increased 7.3 per cent in the past five years.CREA’s president of the real estate, retail and hospitality sector, Scott MacPherson, said in a statement Tuesday that the drop in house prices is not surprising given the recession that has hit the Canadian economy.
“The real estate sector has seen strong momentum since the onset of the global financial crisis,” MacPhersons said.
“With the fall in oil prices, a strong economy and a stronger Canada, Canadians are finding it more difficult to buy and sell homes in the current market environment.”
The report is the latest to highlight the challenges facing Canada’s housing market and the country’s ability to manage it during the economic downturn.
The CREA’s report comes on the heels of a new study from the BMO Capital Markets Canadian Real-estate Institute that found the average price of a detached home in Canada was $1.05 million in February.
That compares with $831,000 in the fourth quarter of 2016.
The median house price was $3.1 million in the same month, down from $3 million in January and $5.9 million in December 2016.
The average price for a detached condo rose 4.5 per cent to $1,837,000.
In the past year, CREA has released quarterly reports on housing, the economy and real estate trends, including an analysis of the latest census data.
The data shows Canada’s average housing price fell by 3.9 per cent, to $2,928,000, in the second quarter of 2018.
That was the first quarterly decline since the recession began in 2008.
The CREA also released a report on March 4 that found prices have increased slightly over the past six months, to the average of $1 million for a one-bedroom home.