The national average home price in Canada has dropped again

Home sales drop 5.3 per cent in July Emma Pace of the Monstera Real Estate team explains why more sellers are choosing to take their homes off the market.

OTTAWA — The Canadian Real Estate Association is cutting its forecast for home sales this year and lowering its expectations for price growth.

In its latest housing market outlook, the association says it expects 532,545 properties to trade hands via Canadian MLS systems this year, down 20 per cent from the 2021 annual record.

The national average home price is forecast to rise by 4.7 per cent to $720,255.

The outlook is down from CREA's forecast in June that predicted a 14.7 per cent decline in sales this year and a 10.8 per cent increase in the national average home price.

The updated forecast came as CREA says home sales in August were down one per cent compared with July and 24.7 per cent lower than August last year.

The national average home price was $637,673 in August, down 3.9 per cent from the same month last year.

This report by The Canadian Press was first published Sept. 15, 2022.