MONTRÉAL, QUÉBEC--(Marketwired - Feb. 6, 2014) - According to the latest forecasts conducted by Canada Mortgage and Housing Corporation (CMHC), Quebec housing starts will amount to 38,000 units in 2014 and 38,800 units in 2015.
"In Quebec, moderate economic and employment growth will limit demand of existing and new homes this year and next. In addition, relatively high inventories of new and existing dwellings will also constrain the number of starts," said Kevin Hughes, CMHC Regional economist for the province of Quebec.
Following a drop in 2013, starts of single-detached homes will remain relatively stable during the next two years, reaching 13,200 in 2014 and 13,400 in 2015. Future demand will be influenced by moderate employment growth, the continued easing of the resale market, and the trend toward multiple housing.
After coming back down to a level that is more in line with the demographic trends, multiple housing starts will also stabilize this year and next. This market segment will continue to be supported by its relative lower price in comparison to new single-detached homes. Further growth will be limited by relatively high levels of supply of new and resale housing, which will provide more choice to potential home buyers. Starts of multiple dwellings will be at 24,800 units in 2014 and 25,400 in 2015.
Sales of existing houses recorded by Centris® should increase slightly this year, in line with moderate employment growth. Following a certain rebound in the second half of 2013, resales will continue on this trend and reach the 73,900 level this year. In 2015, buying conditions will be somewhat impeded by anticipated slightly higher interest rates. Nonetheless, 75,000 Centris® resales will be achieved next year.
With lower demand and rising supply, prices of resale homes will post marginal growth during the forecast horizon. A gradual return to more balanced market conditions will keep price growth around the one per cent mark this year and next. As a result, the average price recorded by Centris® will reach $265,800 this year and $269,000 in 2015.
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, visit www.cmhc.ca or call 1-800-668-2642.
CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.
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