The Canadian Real Estate Association has downgraded its home sales forecast for this year and next as fewer buyers jump into the market.

The association expects 464,239 properties to trade hands this year, a 6.8 per cent decrease from last year. It also now predicts 516,043 being sold in 2024.

In an April forecast, CREA said it expected 492,674 properties to be sold this year, a drop of 1.1 per cent from 2022. Home sales for 2024 were predicted to total 561,090. 

While the association says it has seen a sales rebound in most parts of the country, interest rate hikes are continuing to weigh on borrowing costs and buyer sentiment. It sees markets are still being hampered by a lack of supply, though prices aren't bearing the brunt as much as sales.

It now forecasts the national average home price edging down 0.2 per cent from 2022 to $702,409 this year before rising to $723,243 in 2024.

The April forecast pointed to an average price of $670,389 for this year and $702,200 in 2024.

This report by The Canadian Press was first published July 14, 2023.