Canadian Housing Market to Moderate: CMHC
Canada’s new and existing home markets are expected to moderate through the end of 2012 and into 2013, according to Canada Mortgage and Housing Corporation’s (CMHC) third quarter 2012 Housing Market Outlook, Canada Edition1.
“Canada’s housing markets are expected to moderate over the rest of 2012 and into 2013 after showing sustained activity levels, specifically in the multiples segment, over the first half of 2012. Balanced market conditions in most local housing markets will result in a slowing in house price growth as well,” said Mathieu Laberge, Deputy Chief Economist for CMHC.
On an annual basis, housing starts will be in the range of 196,800 to 217,000 units in 2012, with a point forecast of 207,200 units. In 2013, housing starts will be in the range of 173,000 to 207,400 units, with a point forecast of 193,100 units.
Existing home sales will be in the range of 442,300 to 485,200 units in 2012, with a point forecast of 466,600 units. In 2013, MLS®2 sales are expected to move up in the range of 440,500 to 487,600 units, with a point forecast of 469,600 units.
The average MLS® price is forecast to be between $351,300 and $378,400 in 2012 and between $358,000 and $395,800 in 2013. CMHC’s point forecast for the average MLS® price is $368,000 for 2012 and $377,300 for 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 July 25, 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.