According to a new report from the Canada Mortgage and Housing Corporation, the Canadian housing market is expected to moderate through the end of 2012 and into 2013.
“Canada’s housing markets are expected to moderate over the rest of 2012 and into 2013 after showing sustained activity levels, specifically in the multiples segment, over the first half of 2012,” explains Mathieu Laberge, Deputy Chief Economist at the CMHC.
“Balanced market conditions in most local housing markets will result in a slowing in house price growth as well.”
The report predicts that housing starts will be in the range of 196,000 to 217,000 units in 2012. In 2013, housing starts will be in the range of 173,000 to 207,400 units.
The forecast is slightly different for existing home sales which will be in the range of 442,300 to 485,200 units in 2012, with a point forecast of 466,600 units. In 2013, MLS® sales are expected to move up in the range of 440,500 to 487,600 units, with a point forecast of 469,600 units.
The report forecasts the average MLS® sale price to land between $351,300 and $378,400 in 2012 and between $358,000 and $395,800 in 2013.