the First-Time Home Buyer Incentive<\/a>, a shared-equity mortgage scheme, and increasing the maximum RRSP withdrawal amount to $35,000 for the purchase of a home.<\/p>\n\u201cThese factors are expected to support\u2026 the beginnings of a recovery in home sales over the second half of 2019 after starting this year on a weak footing,\u201d says CREA in the forecast.<\/p>\n
However, mortgage stress testing is a factor keeping sales below higher levels seen in past years, CREA suggests. \u201cThis is particularly the case in pricier areas where younger buyers have had little choice but to borrow more to get into the market.\u201d<\/p>\n
For pricing, CREA anticipates the average selling price of a Canadian home will be $485,200, down 0.6 percent year-over-year, before rebounding by 0.9 percent to an average of $489,800.<\/p>\n
In March, CREA was predicting a 0.2-percent drop this year and a 0.8 percent increase in 2020.<\/p>\n
\u201cAverage price trends across Canada in 2020 are generally expected to be more moderate versions of those in 2019, with small declines in British Columbia, Alberta, Saskatchewan and Newfoundland and Labrador, and modest gains in all provinces from Manitoba through the Maritimes,\u201d says CREA.<\/p>\n
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