The Canadian Real Estate Association (CREA) revised its 2026 and 2027 forecasts, now expecting 444,530 residential properties to trade in 2026, down 5.2% from 2025, mainly because of higher fixed mortgage rates and uncertainty about how far variable rates will rise. The national average home price is forecast to edge up 0.2% to $681,681 in 2026, as a 3% drop in Ontario and a 0.8% decline in British Columbia are offset by gains elsewhere, led by Newfoundland and Labrador (+5.7%) and Saskatchewan (+5%). For 2027, CREA expects home sales to climb 4.4% to 464,235 units and the average price to rise 1.2% to $689,909, assuming limited action by the Bank of Canada. Markets are pricing in about 100 basis points of rate hikes over the next year, although the consensus of interest rate forecasts leans toward smaller increases.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on theobserver.ca ↗
Related news
- CREA Revises Resale Housing Market Forecast
CREA has updated its forecasts, now projecting 444,530 home sales via Canadian MLS® Systems in 2026, down 5.2% from 2025, mainly due to higher fixed mortgage rates and uncertainty about variable rates. The national average home price is forecast to rise 0.2% to $681,681 in 2026, as declines of 0.8% in British Columbia and 3% in Ontario are offset by gains elsewhere, led by Newfoundland and Labrador (+5.7%) and Saskatchewan (+5%). For 2027, sales are expected to climb 4.4% to 464,235 units and the average price to rise 1.2% to $689,909. The forecast assumes limited Bank of Canada action over the next year, even though markets have priced in approximately 100 basis points of rate hikes.
- CREA revises down 2026 home sales forecast again as September transactions fall 7 . 7 % over same month last year
- CREA downgrades home sales forecast for the third time this year
- CREA downgrades home sales forecast for the third time this year – Winnipeg Free Press
CREA has downgraded its 2026 home sales forecast for the third straight quarter, now expecting 444,530 sales this year, down 5.2% from 2025, compared with a July forecast of a 1.4% decline. The national average home price is projected to rise 0.2% to $681,681, about $5,000 lower than predicted in the summer. In September, national home sales fell 7.7% year over year and 2.3% from August, the national average sale price dropped 1.6% to $666,538, and CREA's home price index declined 3.4% year over year. Senior economist Shaun Cathcart said many markets stepped back after four months of modest progress, following a jump in fixed mortgage rates and widespread expectations of a Bank of Canada rate hike before year-end.
Related markets
Latest news
- Meta Earnings: What To Look For From META
Meta Platforms (NASDAQ:META) will report earnings this Wednesday after the market closes. Last quarter, revenue reached $60.8 billion, up 28% year on year and above analysts' expectations, though revenue guidance for next quarter slightly missed forecasts; daily active users hit 3.6 billion, up 3.4%. The market expects revenue growth of 23.6% this quarter, slowing from 26.2% a year earlier, and analysts have generally reconfirmed their estimates over the past 30 days. Over the last month, consumer internet stocks have gained 1.3% on average, while Meta is down 4.8%.
- An AI bust could come from places investors arent watching , an economist says
Concerns about an AI bubble are growing, and TS Lombard's Dario Perkins warns that investors may be overlooking other risks. Debt among smaller cloud providers, model developers and suppliers could reach $2 trillion by the end of 2027. Perkins does not see this as a systemic risk, but warns that earnings disappointments and canceled orders could ripple through the ecosystem, and that a chip glut could follow over-ordering. Much of the industry's revenue growth still comes from spending within the AI ecosystem rather than from businesses and consumers outside it. He also flags political backlash, noting that ordinary people dislike AI and nearby datacenters, and warns that one high-profile accident could turn AI toxic.
- Yen jumps after JGB auction draws big demand , euro finds relief
The yen rose 0.2% to 158.15 per dollar in Asian trading after a 20-year Japanese government bond auction drew bids of 5.84 times the amount sold, well above the 4.01 times at the previous auction, and the yield fell 6 basis points to 3.71%. A State Street strategist said the record demand suggests sidelined cash is returning and that JGBs are becoming a relative haven from political and fiscal volatility in Europe, particularly France. Anti-government protests in France prompted curfews in several cities, while Italy said it would send 500 troops after two days of unrest, and the euro rallied 0.2% to $1.1234. Elsewhere, bitcoin slipped 0.3% to $81,674.25 and ether edged down 0.2% to $2,393.21.
- Unemployment rate dips to 4 . 7 % - but vacancies hit five - year low
Vacancies fell by 21,000 to 691,000 in the three months to September, the biggest drop since the three months to March and the lowest since July to September 2014 outside the pandemic, while unemployment dipped in the three months to August. Payroll numbers were down 66,000 over the year to September. The ONS said the fall was mainly among smaller firms struggling with higher labour costs, following rises in employer national insurance, the minimum wage and workers' rights. A CBI survey found labour costs and regulations were making it harder to create jobs, and firms urged the Chancellor not to add to their burden in the October 28 Budget. ICAEW's Suren Thiru said the labour market is 'running on idle' and unemployment could climb above 5 per cent, while Shadow Chancellor Andrew Griffith blamed Labour's 'Jobs Tax' and red tape.
- CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet
U.S. tech stocks rebounded as the Nasdaq Composite rose more than 1% on Monday, with Nvidia up 1.4% and Tesla up 3.8%. In Asia, however, tech shares fell on Tuesday, with South Korea's Kospi down over 4% and Japan's Nikkei 225 down 1.6%. Nvidia also unveiled plans to back four German AI startups as part of its nearly $10 billion European investment commitment. Jenny Lee of Granite Asia said Asian companies are reaching IPOs much sooner, often at four to five years old, while Jio Platforms' Indian IPO saw its anchor investor quota oversubscribed more than 30 times, aiming to raise up to 302 billion rupees ($3.2 billion). In Singapore, several agricultural stocks fell after Senior Minister K Shanmugam warned that companies would not escape responsibility for possible roles in the haze, noting seven firms had been questioned by the Singapore Exchange.
- NiSource (NI) Stock Looks Overvalued Against Its Dividend Outlook
NiSource has nearly doubled shareholders' money over the past five years, delivering a 97.6% total return, which raises the question of whether dividends can justify the current share price. The article highlights a new 20-year energy agreement with Microsoft, including customer-funded grid upgrades and long-term electric service for data centers, which may affect future capital needs and cash-flow visibility. Using a Dividend Discount Model with inputs of about $1.35 dividend per share, roughly 9.07% return on equity, a payout ratio slightly above 61%, and implied dividend growth of about 3.5%, the estimated intrinsic value sits meaningfully below the current share price of $41.95. The model still does not bridge that gap, suggesting income investors are paying a premium for a relatively steady payout with modest assumed growth.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.