The Canadian Real Estate Association (CREA) recently released its predictions for 2009-2010, and it expects Multiple Listing Service (MLS) sales to decline in 2009 before rebounding in 2010. The organization does not use properties sold by the owner or through private listings in its estimates, but the trend is similar to what is being seen across the border in the US.
Nationally, MLS sales in Canada declined by 17.1 percent in 2008 according to CREA, and they are predicting a further decrease of 16.9 percent in sales for 2009. That will bring the total number of units sold in Canada through the MLS to 360,000 for the year, which will be the lowest level of activity since 2000. Sales are expected to decline in each of the country’s provinces, with British Columbia, Alberta and Ontario leading the way.
For 2010, CREA expects sales activity to rebound by nearly 10 percent to approximately 396,600 units sold. The activity in the second half of the year will see the largest increase, and once again British Columbia will lead the way.
“Increasingly cautious homebuyers and mortgage lenders means that active listings will take longer to sell in 2009 compared to previous years,” said CREA Chief Economist Gregory Klump.
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