BuzzBuzzHome Corp.
March 2, 2010

Housing starts rebounded in the latter half of 2009 and will strengthen in 2010 and get even stronger for 2011, according to Canada Mortgage and Housing Corporation.

Last year saw a total of 149,081 housing starts; this year, housing starts are expected to be between 152,000 and 189,300 units. What is in range for next year? A range of 156,400-to-205,600 units.

“Canadian housing markets will benefit from improving economic conditions and low mortgage rates,” said Bob Dugan, CMHC’s chief economist.

Average home prices were $328,537 in January, up 19.6 per cent from one year ago, according to the Canadian Real Estate Association. With an improved balance between demand and supply, the average MLS® price is expected to remain close to the average in the last quarter of 2009, for most of 2010, and then rise modestly in 2011.

So… where are we now? A buyers market or a sellers market? Mr. Dugan noted that the existing home market has shifted from a buyers’ market, at the beginning of 2009, to a sellers’ market. The relative lack of new listings for existing homes has pushed some of the demand into the new home market, which helps explain the forecast for higher housing starts activity in 2010.

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