Market forecasts are never easy, as the forecast for Canadian real estate is as varied as the individual characteristics of the many housing markets within Canada.
A report from PwC Canada and the Urban Land Institute reports that property owners are cautiously optimistic about the real estate market's outlook for 2017. The report forecasts a "year of stability" for the housing market, despite a slight drop in prices and a pullback in the Toronto and Vancouver markets.*
The Canadian Real Estate Association forecasts a slight decline in national sales for 2017. They expect transactions in British Columbia and Ontario to remain strong, but also anticipate they will fall short of 2016's record levels to some degree due to a lack of supply of single-family homes.
The Canada Mortgage and Housing Corporation (CMHC) believes MLS® sales will soften from last year to between 489,500 and 509,700 in 2017 before settling in 2018 at between 488,100 and 511, 100. Likewise, the CMHC expects resale prices to come in at between $483,600 and $507,800 in 2017 and between $497,700 and $525,100 in 2018. Meanwhile, the CMHC anticipates mortgage rates to rise modestly from the posted 5-year mortgage rate to within a 4.4 to 5.2 percent range in 2017, and then to within a 4.5 to 5.7 percent range in 2018.**
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* www.pwc.com/ca/en/industries/emerging-trendsin- real-estate.html
** www.cmhc-schl.gc.ca/odpub/ esub/61500/61500_2016_B02.pdf?fr=1478014289803