CREA (Canadian Real Estate Association) forecast today that average Alberta prices will drop 8.9% in 2009, and then another 1.1% in 2010.
CREA also forecast that Alberta sales are to drop 19.1% in 2009. But since Calgary SFH sales were forecast last month by CREB (Calgary Real Estate Board) to increase 10% in 2009, I guess that drop will be focused in Edmonton.
It must be noted that CREA’s forecasts have been dreadful in the past. Last May they said “The MLS® residential average price is forecast to rise 5.3 per cent in 2008 and a further 4.2 per cent next year, pushing prices to new heights” (Source)
In November 2007 they said, “The MLS® residential average price is forecast to set new records in all provinces this year and next…New listings are forecast to rise further in all provinces except Alberta.” (Source) Of course we know we hit record inventory levels here last year.
Let’s just hope CREA doesn’t always err on the optimistic side each time, because this current forecast was grim. The only real positive was, “But sellers unwilling to accept offers below their expectations will remove their home from the market,” CREA’s Chief Economist said. “Fewer active listings reduces buyer choice, and in time puts a floor under prices.”
Mike Fotiou, First Place Realty, is a licensed Realtor, Certified Condominium Specialist, Accredited Buyer’s Representative and Commissioner for Oaths in the Province of Alberta.