WINNIPEG, MANITOBA--(Marketwired - May 22, 2014) - According to Canada Mortgage and Housing Corporation's (CMHC) Spring 2014 Winnipeg Housing Market Outlook released today, total housing starts in the Winnipeg Census Metropolitan Area (CMA) are expected to ease to 4,300 units in 2014 before moderately increasing to 4,350 in 2015.
"Several factors will result in reduced demand for new housing over the forecast period, including lower net migration, moderate job growth, and increasing competition from the resale market," noted Dianne Himbeault, CMHC's Senior Market Analyst for Winnipeg. "In the face of moderating demand, the inventory of complete and unabsorbed homes is elevated, which will also inhibit production this year and keep increases modest in 2015," she added.
Following a 25-year high in 2013, single-detached starts are expected to moderate to 2,050 units in 2014, a decrease of 7.6 per cent. The reduction will allow inventories to be drawn down, prompting a modest 2.4 per cent increase in single-detached housing starts to 2,100 units in 2015.
Multi-family starts, which consist of semi-detached units, rows, and apartments, will moderate by 9.5 per cent to 2,250 units in 2014 and remain at this level for 2015, due largely to increasing inventories. Despite this expected moderation, Winnipeg continues to experience heightened demand for multi-family construction from a variety of fronts. Winnipeg's demographic profile is showing a higher level of growth among younger households who have a propensity to rent or purchase a condominium, as well as older households looking to downsize.
Sales of existing homes in Winnipeg will increase by 1.3 per cent in 2014 to 12,250 transactions and rise a further 1.2 per cent to 12,400 in 2015. This market will be supported by stable employment and positive net migration, as well as increased active listings which will provide more selection and draw some buyers from the new home market. Additionally, equity gains from previous years and low mortgage rates will continue to support demand.
The average sale price of a home in the resale market is expected to reach $277,000 in 2014, an increase of 3.2 per cent, and rise a further 2.9 per cent to $285,000 in 2015. More homeowners will choose to take advantage of recent price increases and list their homes, resulting in a slower pace of price growth compared to previous years.
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 www.cmhc.ca/housingmarketinformation.
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Additional data is available upon request
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