Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

August 15, 2013 08:15 ET

Housing Starts Forecast to Stabilize, Resales to Gain Momentum

OTTAWA, ONTARIO--(Marketwired - Aug. 15, 2013) - Canada Mortgage and Housing Corporation (CMHC) expects total housing starts to be lower in 2013 compared to 2012, mostly due to moderation observed in the first half of 2013. 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(1).

"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®(2)) 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.

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 at CMHC.ca/Newsroom.

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.

Follow CMHC on Twitter @CMHC_ca

(1) The forecasts included in the Housing Market Outlook reflect information available as of April 26, 2013. 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.

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