In the forecast of what to expect from the Canadian real estate this year, property sales and prices are projected to increase across the country but each province will have a unique growth rate. While property sales in the entire country is expected to decline by 3% this year and the average home price to rise by 4.8% to $513,500 this year, all regions will record a different figure. Reports from the Canadian Real Estate Association, British Columbia will most likely record the greatest decline of 17.5%, followed by Prince Edward Island of 10.8% as figures from both regions are returning back to normal following a rough year in 2016.
Further declines are expected to be seen in Newfoundland and Labrador of 8.4% while in Alberta, the highest sales growth is expected of about 5% but this growth remains lower than the 10 year average which is also 10%. Ontario will also see a slight rise of 1% as an increased demand continues to prevail amid lack of supply. In British Columbia likewise Newfoundland and Labrador there is a projected decrease in the average home price of 5% while in Saskatchewan a 2.8% decrease is also to be seen. In contrast, home prices in Ontario are expected to increase by 15%.
While homes prices and sales are expected to either increase or decrease in various provinces, new government regulations will in most areas affect the real estate market. For regions that have been showing signs of growing, the rate is still expected to be below the inflation level. Home prices in regions that are affected by oil prices are also expected to make modest recovery with increases in average home prices. Sales and prices in British Columbia are also returning to normal following the introduction of a foreign buyer tax last year by the government. The Lower Mainland which holds the highest number of expensive homes will likely see softer sales and home prices.