The Canadian Real Estate Association has raised its outlook for home sales this year, pointing to an improving economic outlook and strengthening consumer confidence.
Sales in 2011 are expected to total 439,900 units, which is still down 1.6 per cent from 2010, the industry group said Tuesday.
Its previous forecast was for a nine-per-cent decline this year to 402,500 units. However, it forecasts sales to rise three per cent to 453,300 units in 2012, in line with the 10-year average.
CREA said sales in the second half of 2010 rebounded faster than previously expected. “The hand-off going into 2011, together with the highs and lows for sales activity posted in 2010, provided guidance for CREA’s revised forecast,” CREA economist Gregory Klump said.
Meanwhile, CREA expects the average home price in Canada to rise 1.3 per cent to $343,300 in 2011. It previously forecast a decline of 1.3 per cent to $326,000.
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