Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

August 13, 2014 08:15 ET

Prairie Housing Starts to Increase in 2014 and Ease in 2015

CALGARY, ALBERTA--(Marketwired - Aug. 13, 2014) - According to Canada Mortgage and Housing Corporation's (CMHC) third quarter 2014 Housing Market Outlook, Prairies Highlights, report released today, housing starts in the Prairie region are projected to increase to 52,900 units in 2014 before moderating to 50,800 in 2015.

"Following a 2.2 per cent gain this year, housing starts across the Prairie provinces will move lower in 2015. Net migration is expected to decline from the record achieved in 2013, while employment growth is also expected to moderate. On the supply side, an elevated supply of multi-family units will shift some focus next year from initiating new projects to selling those under construction and in inventory. The resale market will also become more competitive drawing some sales away from the new home market in 2015," said Richard Cho, CMHC's Senior Market Analyst.

Housing starts in Alberta are projected to rise seven per cent to 38,600 units in 2014 before moderating to 36,800 in 2015. Housing starts in Saskatchewan will decrease by five per cent to 7,900 units in 2014 and to 7,500 in 2015. In Manitoba, housing starts are projected to decline 14 per cent to 6,400 in 2014 before increasing to 6,500 in 2015.

In Alberta, MLS® sales are projected to increase to 69,900 in 2014 and 71,900 in 2015. A record number of migrants over the past few years is generating momentum for resale housing demand. In Saskatchewan, supported by continued employment growth and population gains, Saskatchewan's MLS® sales are forecast to reach 13,700 units in 2014 and 13,800 in 2015. Manitoba's resale market will see some increase in sales over the forecast period with 13,900 transactions in 2014 and 14,100 in 2015. Equity gains from the past few years will prompt some owners to upgrade their homes, while elevating active listings will offer more selection to prospective buyers.

Of the three Prairie Provinces, price growth will be highest this year in Alberta where demand is increasing the most. The average resale price in Alberta is forecast to increase 4.2 per cent to $396,800 in 2014 and $407,000 in 2015. New listings this year are rising in both Saskatchewan and Manitoba relative to sales and moderating price growth this year. In Saskatchewan, the average MLS® price is forecast to rise to $295,600 in 2014 and $303,000 in 2015. In Manitoba, the MLS® price is forecast to rise to $266,200 in 2014 and $273,800 in 2015.

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.

Follow CMHC on Twitter @CMHC_ca

Additional data is available upon request

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Contact Information

  • Market Analysis Contact
    Richard Cho, Senior Market Analyst
    (403) 515-2996
    rcho@cmhc.ca

    Media Contact
    Charles Daniel Mainville, Senior Communications Consultant
    (403) 515-2915
    cdmainvi@cmhc.ca