Canadian Real Estate Association lowers home sales forecast for 2026

The Canadian Real Estate Association has downgraded its forecast for home sales activity this year.

In January, it predicted home sales would be up more than 5 per cent this year.

Now it’s dropped that forecast to a one per cent increase in sales.

It says rising global economic uncertainty, along with a jump in fixed mortgage rates tied to incoming higher inflation has, “piled on to an already shaky economic start to the year.”

The national average home price is forecast to rise 1.5 Per cent to about $689,000.

That’s $10,000 lower than predicted in January.

In March, the national average sale price fell 0.8 per cent, compared with a year earlier to $673,084.

The association says national home sales were virtually unchanged on a seasonally adjusted month-over-month basis, as rising global economic uncertainty, along with a jump in fixed mortgage rates tied to incoming higher inflation, “piled on to an already shaky economic start to the year.”

Meanwhile, home sales in Toronto saw a slight bump for the first time since September, as the average home sale price dropped.

With files from The Canadian Press.

READ MORE: Greater Toronto home sales up year-over-year for first time in six months: TRREB