New numbers released by the Canada Mortgage and Housing Corporation (CMHC) have the agency forecasting fewer housing starts for the first half for 2013. But they expect the market to perk up during the second half of the year as well as in 2014.
Moderation was the main word of choice in the news release.
Housing starts are expected to range between 178,600 to 202,000 units in 2013, with a point forecast of 190,300 units, following a level of 214,827 units in 2012. Next year, the CMHC believes housing starts will range from 171,200 to 217,000 units, with a point forecast of 194,100 units.
The reason for the increase in the following year?
“In 2014, improving economic conditions may be partially offset by a slight moderation in the number of first-time homebuyers, and potential small and steady increases in mortgage interest rates,” said Mathieu Laberge, Deputy Chief Economist for CMHC.
Factors such as employment levels, economic growth and net migration are all expected to gain momentum later in 2013 and 2014, giving the market a bit of a boost.
In terms of home sales, they’re expected to range between 418,200 to 484,000 units in 2013 with a point forecast of 451,100 units, after a level of 453,372 in 2012. Those numbers are also expected to rise in 2014. The Multiple Listing Service (MLS) have been pegged at 439,600 to 505,000 units, with an increase in the point forecast to 472,300 units in 2014.
As far as home values are concerned, the average MLS price ie expected to be somewhere between $356,500 and $378,500 in 2013 and between $363,800 and $390,800 in 2014.
For more information about the CMHC’s expectations for 2013 and 2014 check out their complete findings here.