Source: Canadian Investor Magazine
According to a report issued by Canada Mortgage and Housing Corporation, (CMHC) housing starts declined earlier in the year, but are expected to remain stable in the second half of 2013, before increasing modestly in 2014, along with improving economic fundamentals, including employment and net migration.
Across Canada, total housing starts are expected to decline to 182,800 in 2013 and to increase modestly to 186,600 in 2014. Single housing starts should account for a growing share through 2014.
Resales of existing home sales are expected to decline marginally in 2013, but rise along with economic conditions in 2014.
Resale Prices
The sales-to-new listings ratio is expected to remain well anchored in balanced market conditions over the forecast period. Nevertheless, some price growth momentum will see the average price grow roughly in line with inflation in 2013 and 2014.
The average MLS® price is expected to rise to $374,800 in 2013 and then to $382,800 in 2014.
Alberta’s Still Booming
Total housing starts are forecast to decline in 2013 in all provinces, except for Alberta. Housing starts are slowing less in the Western provinces than in Central Canada. In 2014, housing starts are also expected to rebound stronger in Western provinces than the national average.
Resales of existing home sales are expected to decline marginally in 2013, but rise along with economic conditions in 2014.
Resale Prices
The sales-to-new listings ratio is expected to remain well anchored in balanced market conditions over the forecast period. Nevertheless, some price growth momentum will see the average price grow roughly in line with inflation in 2013 and 2014.
The average MLS® price is expected to rise to $374,800 in 2013 and then to $382,800 in 2014.
Alberta’s Still Booming
Total housing starts are forecast to decline in 2013 in all provinces, except for Alberta. Housing starts are slowing less in the Western provinces than in Central Canada. In 2014, housing starts are also expected to rebound stronger in Western provinces than the national average.