OTTAWA - The Canadian Real Estate Association says home sales in Ontario were stronger than anticipated during the third quarter -- resulting in a slightly brighter outlook for CREA's 2011 and 2012 national forecasts.
The industry association is now projecting sales this year will be up 1.4 per cent from 2010, half a percentage point better than the previous forecast.
CREA expects there will be slightly fewer units sold next year than in 2011, but the 0.5 per cent decline is an upward revision.
The association is now forecasting 453,300 home sales countrywide this year, up from 446,915 in 2010. The forecast for 2012 is 451,200 homes sold.
The revision comes at a time when central banks in Canada and the United States are keeping their key lending rates low to counter the economic drag caused by the European debt crisis.
The assurance of relatively low borrowing costs has probably given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike, although they have also been monitoring the darkening economic clouds.
"There was no shortage of headline news in October about global financial market volatility and economic uncertainty, but it doesn't appear to have dampened homebuyers' spirits," said Gary Morse, CREA's president.
"Interest rates are at low levels and are likely to stay that way for some time to come. Homebuyers clearly see the opportunities that the current interest rate environment presents."
October's sales activity through CREA members was the highest since January and the national average price was up 5.5 per cent from October 2010.
Sales through the Multiple Listing Service operated by CREA members totalled 38,533 in October, including 35,837 homes -- up 8.1 per cent and 8.5 per cent respectively.
A total of 397,561 homes have been sold through the MLS system in the first 10 months of 2011, up 1.2 per cent above the comparable period last year but in line with the 10-year average.
The national average price for homes sold in October was $362,899, up from $343,950 -- although average prices in local markets varied widely.
Vancouver, as usual, was by far the most expensive market with an average sales price of $767,325. The nearby Fraser Valley area of B.C.'s Lower Mainland was second-most expensive at $483,965 followed by Toronto at $478,137.
The three lowest local average prices tracked by CREA was $154,537 in Trois-Rivieres, Que., $161,691 in Saint John, N.B. and $167,424 in Thunder Bay, Ont.
The forecast national average price for 2011 and 2012 is $362,700, up from $339,049 last year.
