Tight supply conditions along with rising prices prompted the Canadian Real Estate Association to predict the year will end with fewer sales than previously thought.

In its updated forecast CREA feels 656,300 homes will change owners – a nearly 19% increase from 2020, but an almost 4% decline than predicted earlier this year.

The association, which represents more than 135,000 realtors, says the record-setting number it’s predicting is revised downward because sales fell more quickly than predicted this spring.

CREA believes the national average home price is expected to rise to $680,000 this year – an increase of 19.9% over a year ago.

Prices are expected to climb by 5.6% to around $718,000 in 2022, while sales are forecast to slip by 12.1% next year.