Financial Post | Business

OTTAWA, Ont. — The Canadian Real Estate Association cut its sales forecast for this year and next on Monday as it reported slower sales for November in the wake of tighter lending rules that came into force in summer.

The industry association now expects home sales this year to slip 0.5% compared with 2011 to about 456,300.

That compared with a forecast in September that called for sales this year to rise 1.9% to 466,900 units.

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CREA also said it now expects sales next year to drop 2% to 447,400 compared with earlier expectations for a drop of 1.9% to 457,800 in 2013.

“Annual sales in 2012 reflect a stronger profile prior to recent mortgage rule changes followed by weaker activity following their implementation,” said Gregory Klump, CREA’s chief economist.

“By contrast, forecast sales in 2013 reflect an improvement from levels this summer in the immediate wake of…

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