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British Columbia is now adjusting to that tax and CREA raised its forecast for sales in that province in 2017, something expected to offset declines in Ontario. B.C. is still expected to see a nine per cent decline in sales in 2017.

Nationally, the group now forecasts sales to decline 1.5 per cent in 2017 to 527,400. By 2018, sales are expected to decline another 0.8 per cent.

The national average price is set to increase by 7.4 per cent to $526,000 in 2017, led by Ontario which is expected to see a 16 per cent increase for the year which would represent a moderation from where prices are in the province year-to-date. By 2018, CREA says the national average price will increase by 1.8 per cent to $535,400.

CREA also released results Thursday for May and found the number of homes sold via Canadian Multiple Listings service Systems fell by 6.2 per cent from April, the largest month-over-month percentage decline since August 2012.

May sales were down from the previous month in about half of all local markets but the large national decline was driven by a 25.3 per cent month over month decline in the Greater Toronto Area. Activity was down across the GGH region, including Oakville, Milton, Hamilton-Burlington and Barrie.

“Recent changes to housing policy in Ontario have quickly caused sales and listings to become more balanced in the GTA,” said Andrew Peck, president of CREA, in a statement. “Meanwhile, the balance between supply and demand in Vancouver is tightening up, while many places elsewhere in Canada remain amply supplied.”