Canadian Housing Market Expected to Moderate
Both new and existing home market activity are expected to moderate through the end of 2012, according to Canada Mortgage and Housing Corporation’s (CMHC) second quarter 2012 Housing Market Outlook, Canada Edition1.
“Housing has gained some momentum recently. Housing starts in the early part of the year were robust due to the multiples segment, which varies significantly from month to month. Although economic conditions are expected to remain supportive of housing demand, housing starts activity is expected to moderate as 2012 progresses,” said Mathieu Laberge, Deputy Chief Economist for CMHC. “Similarly, balanced market conditions in the existing home market will result in modest house price gains through to the end of the year,” added Laberge.
On an annual basis, housing starts will be in the range of 182,300 to 220,600 units in 2012, with a point forecast of 202,700 units. In 2013, housing starts will be in the range of 175,100 to 213,500 units, with a point forecast of 195,700 units.
Existing home sales will be in the range of 431,200 to 516,100 units in 2012, with a point forecast of 472,300 units. In 2013, MLS®2 sales are expected to move up in the range of 431,300 to 522,400 units, with a point forecast of 474,900 units.
The average MLS® price is forecast to be between $341,100 and $406,700 in 2012 and between $346,000 and $419,900 in 2013. CMHC’s point forecast for the average MLS® price is $372,700 for 2012 and $383,600 for 2013. The moderate increases in the average MLS® price, of 2 to 3 per cent, are consistent with the balanced market conditions that are expected to continue in 2012 and 2013.
As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
For more information, call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.
1 The forecasts included in the Housing Market Outlook reflect information available as of April 27, 2012. Where applicable, forecast ranges are also presented in order to reflect financial and economic uncertainty.
2 Multiple Listing Service® (MLS®) is a registered trademark owned by the Canadian Real Estate Association.
Information on this release:
Kate Munroe, Media Relations