CALGARY, ALBERTA--(Marketwired - May 22, 2014) - According to Canada Mortgage and Housing Corporation's (CMHC) second quarter 2014 Housing Market Outlook, Prairies Highlights, report released today, housing starts in the Prairie region are projected to total 51,000 units in 2014 and 50,000 in 2015.
"Net migration to the Prairie region is forecast to decline from the record level in 2013, while employment growth is also expected to slow. These factors, combined with rising supply in some markets, will contribute to some moderation in housing starts across the Prairies. However, not all provinces will decline this year as regional variances will persist," said Lai Sing Louie, CMHC's Regional Economist for the Prairie and Territories Region.
In Alberta, housing starts are projected to rise by nearly four per cent to 37,400 units in 2014 before moderating to 36,400 in 2015. In Saskatchewan, housing starts will decrease by over nine per cent to 7,500 units in 2014 and then to 7,300 in 2015. In Manitoba, housing starts are projected to decline from 7,465 units in 2013 to 6,100 in 2014 before increasing to 6,300 in 2015.
In Alberta, two consecutive years of record migration will propel the resale market to 68,500 transactions in 2014 and then to 70,000 in 2015. In Saskatchewan, declining net migration will slow demand, though employment growth will help keep resale transactions close to last year's level at 13,600 in 2014 and 13,800 in 2015. In Manitoba, resale transactions are forecast to edge higher to 13,900 in 2014 and 14,100 in 2015, supported by continued home equity gains.
In Alberta, resale market conditions have shifted in favour of the seller, particularly in Calgary. The average resale price in Alberta is forecast to rise 3.9 per cent to $396,000 in 2014 and increase to $406,100 in 2015. In Saskatchewan, the average MLS® price is forecast to rise three per cent to $297,400 in 2014 and to $303,000 in 2015. New listings are rising in Saskatchewan relative to sales, providing buyers with more choice. In Manitoba, the average MLS® price is forecast to rise to $266,500 in 2014 and $273,800 in 2015. Seller's conditions in Winnipeg have dissipated as supply levels have increased.
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high 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 www.cmhc.ca/housingmarketinformation.
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