CMHC: Canadian Housing Market to Stabilize

OTTAWA, ONTARIO--(Marketwire - Nov. 4, 2011) - Housing starts are forecast to stabilize into 2012, according to Canada Mortgage and Housing Corporation's (CMHC) fourth quarter Housing Market Outlook, Canada Edition¹

"Despite continued uncertainty in the global economy, Canada's economic fundamentals remain positive, particularly with respect to interest rates, employment and immigration. These factors will continue to support Canada's housing sector in 2012," said Mathieu Laberge, Deputy Chief Economist for CMHC.

Housing starts will be in the range of 170,900 to 199,900 units in 2011, with a point forecast of 191,000 units. In 2012, housing starts will be in the range of 161,650 to 206,350 units, with a point forecast of 186,750 units.

Existing home sales will be in the range of 423,600 to 470,100 units in 2011, with a point forecast of 450,100 units. In 2012, MLS^®2 sales are expected to move up modestly in the range of 406,100 to 509,000 units, with a point forecast of 458,500 units.

The average MLS® price is forecast to be between $353,100 and $375,300 in 2011 and between $315,800 and $418,700 in 2012. CMHC's point forecast for the average MLS® price is expected to move up to $363,900 in 2011, while 2012 will see a more moderate increase to $368,200. The increase in the average MLS^® price is consistent with the balanced market conditions that have occurred so far in 2011, and that are expected next year.

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.

This release is also available on the CMHC Web site: http://www.cmhc-schl.gc.ca

¹ The forecasts included in the Housing Market Outlook reflect information available as of October 5, 2011, except for the addition of new information regarding the British Columbia and Nova Scotia shipbuilding contracts of October 19th, 2011. 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.