May 14, 2009

Canadian resale home prices to fall 5.2%

Canadian resale home prices will fall 5.2 percent this year, less than the 8 percent forecast earlier, the Canadian Real Estate Association said Thursday.

Average price declines in British Columbia and Alberta are expected to be greatest, down 6.9 percent and 8.8 percent, respectively, the association said.

By contrast, the average home price this year is forecast to rise 4.3 percent in Manitoba, 4.2 percent in Prince Edward Island and 10.9 percent in Newfoundland and Labrador.

Home sales will likely rebound 7.2 percent and prices will edge up 1.7 percent in 2010, despite recently downgraded forecasts for economic growth next year, said the association, which represents more than 97,000 real estate brokers, agents and salespeople across Canada.

The 2010 rebound is forecast to be biggest in British Columbia and Alberta, the association said.