Home sales expected to drop in 2018

MONTREAL — Canadian home sales are expected to drop to their lowest level in three years in 2018, driven largely by a decline in Ontario, the Canadian Real Estate Association said Friday. The association expects that 495,100 homes will be sold next year after downgrading its sales forecast for 2017 on a 9.9 per cent drop in August compared with a year ago.

It expects sales will fall 2.3 per cent in 2018 following a 5.3 per cent decline this year to 506,000, or 20,000 fewer than previously forecast in June. Seasonally adjusted sales in August rose 1.3 per cent from the prior month, due to a 14.3 per cent boost in the Greater Toronto Area.