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CREA downgrades housing market forecast due to 'oil shock' | CBC News
- CREA downgraded its 2026 housing forecast after a spike in fixed mortgage rates and weaker first-quarter sales.
- Oil shocks and Middle East tensions influenced the forecast as inflation spiked and bond yields rose.
- CREA still expects the national average price to rise about 1.5% in 2026 despite the downgrade.
- Regional differences persist, with prices still down year over year in B.C., Alberta, and Ontario.
- The report notes potential upside if the oil shock is short-lived.
- CREA maintained a cautious outlook for 2026 despite some gains expected in certain provinces.
- CREA cited higher mortgage costs as a factor in slower activity, noting March conditions.
- The data show the MLS Home Price Index declined for 16 consecutive months through March.
- CREA reported 167,524 properties were listed for sale at the end of March.
- CREA’s price forecast could shift if oil shock is resolved quickly.
- The report reflects Canadian housing market conditions amid global uncertainties.
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