CANADIAN HOUSING STARTS TO BE LOWER
Canadian housing starts to be lower
Total Canadian housing starts are expected to be lower in 2013 compared to 2012, mostly due to moderation observed in the first half of 2013, reports theCanada Mortgage and Housing Corporation (CMHC).
Housing starts are expected to stabilize in the second half of 2013 before increasing modestly in 2014 as employment, economic growth and net migration improve, according to CMHC’s third quarter 2013 Housing Market Outlook, Canada Edition.
“CMHC expects single-detached units and housing units built in the Western provinces to account for a higher share of total housing starts over the forecast horizon,” said Mathieu Laberge, deputy chief economist for CMHC.
On an annual basis, housing starts are expected to range between 177,100 to 188,500 units in 2013, with a point forecast of 182,800 units, down from 214,827 units in 2012. In 2014, housing starts are expected to range from 165,600 to 207,600 units, with a point forecast of 186,600 units.
Multiple Listing Service (MLS) sales are expected to range between 431,600 to 466,200 units in 2013, with a point forecast of 448,900 units, about equal with the 453,372 in 2012. In 2014, sales are expected to range from 437,700 to 497,500 units, with an increase in the point forecast to 467,600 units.
The average MLS price is forecast to be between $369,100 and $380,500 in 2013 and between $371,700 and $393,900 in 2014. CMHC’s point forecast for the average MLS price calls for a 2.7 per cent gain to $374,800 in 2013 and a further 2.1 per cent gain to $382,800 in 2014.