Canadians wondering about the real estate market can look forward to strong sales throughout the rest of this year. At least, so says the latest residential forecast released by the Canadian Real Estate Association (CREA).

According to CREA, national MLS® home sales activity will remain strong in 2008 despite trending lower from record-level activity last year. In fact, national home sales are forecast to ease 11.5% from last year’s record-breaking pace to total 460,900 units in 2008, and are expected to ease a further 4% the following year. Yet despite moderating slightly from the previous year, the important news is that these totals represent some of the best years on record in Canadian real estate.

Resale home prices are forecast to set new records in every province this year and next, but price gains will be smaller percentages than in recent years. The MLS® residential average price is forecast to rise 5.3% nationally in 2008 and a further 4.2% next year, pushing prices to new heights. Price gains will gradually become smaller as the resale housing market becomes more balanced.

On the provincial level, MLS® home sales are forecast to ease gradually in all provinces in 2008, but record-level activity in Saskatchewan and Newfoundland & Labrador during the first quarter will result in new annual records in these provinces. New listings are forecast to rise in all provinces. The gradual decline in sales activity combined with an increase in new listings will result in a more balanced resale housing market. The market is forecast to remain tightest in Saskatchewan and Manitoba, and as a result price increases in the Prairie provinces will be biggest.

The Canadian resale housing market is continuing on a distinctly different path than the U.S. market, says CREA. The forecast growth in average resale home price for Canada stands in stark contrast to the U.S. housing market, where prices and sales activity are on the decline. CREA credits growth in after-tax income, strong employment and short-term interest rate cuts for our strong 2008 market forecast. These factors will support housing demand, despite further home price increases and increasing economic uncertainty that are wearing on consumer sentiment about making major purchases such as a car or home.

Of course, this is only the national picture and some provincial forecasts. If you’re thinking of buying or selling a home, you’ll want to know the outlook for your local market. As your local REALTOR® will tell you, prices and sales activity can vary dramatically within the same community, between neighbourhoods, or even from street to street. You’ll need a proven professional to help guide you through the process and arm you with the right information to make informed decisions. Why not contact us and find out how to work today’s market to your advantage.

Having just finished one of the most productive and busy two week periods this year I can tacitly say that interest in the Okanagan as a "lifestyle" destination is not waning at all.