The Candian Real Estate Association (CREA) has adjusted its expectations for home prices and sales. CREA announced that it now predicts a decrease in home prices and fewer sales this year. This change is due to an increase in the number of homes available on the market. With more homes for sale, buyers have more choices, which can lead to lower prices.
One major factor contributing to this situation is the rise in interest rates. Higher interest rates make it more expensive to borrow money, which can reduce the number of people looking to buy homes. As a result, homes are staying on the market longer, and sellers may need to lower their prices to attract buyers. This has led to a buildup in home inventories, meaning there are more homes for sale than there are buyers.
CREA's new forecast suggests that the average home price in Canada will drop by 4.8% this year. They also predict that the total number of home sales will decrease by 6.8%. This shift is significant because it reflects a cooling in the Candian housing market after years of rapid price increases and high demand. For potential homebuyers, this could be an opportunity to purchase a home at a lower price.
Despite these changes, experts believe the market will eventually stabilize. They note that while the current situation is challenging for sellers, it could lead to a more balanced market in the long term. This means that while prices and sales might be lower now, the market could become healthier and more sustainable in the future.
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