The number of homes sold in 2008 in Canada is expected to total 440,000, a 15 per cent decrease from the previous year, ReMax said in its sales forecast Wednesday.

The realtor attributes the decline to the credit crunch, fluctuating stock market and flagging consumer confidence, noting sales in the first half of the year were strong.

"Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009," the report said.

"Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored."

Newfoundland will lead the country with 2008 sales rising 11 per cent over 2007, ReMax said.

The report also reported housing values will rise in the following regions:

• Regina (39 per cent).
• Saskatoon (24 per cent).
• Winnipeg (22 per cent).
• St. John's (21 per cent)
• Saint John (19.5 per cent).
• Sudbury (14 per cent)
• Montreal (12 per cent).

Housing values are expected to ring in at around $300,000, a three per cent decline from 2007, the forecast said. Sales in 2009 are anticipated to mirror 2008 levels, with average prices dropping to $293,000.