According to Housing Market Outlook, Canadian Edition, housing starts will be in the range of 182,300 to 220,600 units this year.
The deputy chief economist Mathieu Laberge said that housing starts in the early part of the year were driven by condo construction.
He went on to note that “although economic conditions are expected to remain supportive of housing demand, housing starts activity is expected to moderate as 2012 progresses.”
Looking way ahead, the CMHC expects housing starts for 2013 to range between 175,100 and 213,500 units, with a point forecast of 195,700 units. It also forecasts the average 2012 MLS price to range between $346,000 and $419,000. The report suggests that the moderate increase is consistent with balanced market conditions that are expected to continue in 2012 and 2012.
The market conditions are supported by numbers released by Statistics Canada.
An article in the Canadian Business notes that “[the CMHC ] report c[omes] as Statistics Canada said its new housing price index rose 0.2 per cent in April, following a 0.3 per cent increase in March. On a year-over-year basis, the index was up 2.5 per cent in April, following a 2.6 increase in March.”