The Canadian Real Estate Association expects average house prices in Alberta, Saskatchewan and Newfoundland and Labrador to fall next year because of the downturn in the oil industry.

The association is estimating Alberta's average housing price will fall in 2016 by 2.5 percent.

The decline in Saskatchewan is expected to be 1.2 per cent and in Newfoundland the decline is expected to be one per cent.

Canada's national average house price is expected to edge higher by 1.4 per cent in 2016, to $448,700 — with Ontario leading the other regions with an increase of 2.9 per cent.

CREA says that low interest rates will assist sales but that the federal government's recent reforms to mortgage lending rules will have a negative effect beyond its intended targets in the Vancouver and Toronto areas.

It says the new mortgage rules will also likely reduce sales activity in Calgary once they take effect early next year.