Yesterday, the Canada Mortgage and Housing Corporation (CMHC) released their forecast for Canadian housing starts, suggesting that they’ll stay stable throughout the year ahead.
Since real estate is always so dependent on location, location, location, we looked into the separate regional reports for the housing outlook in the big cities of Central Canada.
A breakdown of the predictions below:
- New home starts are expected to slow to 33,900 units in 2014 with both singles and condo construction moderating from 2013.
- Existing home sales will move up slightly to 90,000, with stronger income growth leading to more buying activity.
- Sales of existing homes are expected to fall in 2013 by 6.5 per cent, but turn around in 2014 with a 7 per cent gain. (Tweet this fact)
- After a particularly robust 2012, the CMHC is predicting starts will soften in 2014, keeping in line with the city’s demographic needs.
- The nation’s capital is expected to see MLS sales increase heading into the next year, then moderate as mortgage rates rise in mid-2014.
- The market is expected to be balanced with price growth staying in line with inflation. (Tweet this fact)
- Though new home starts saw a 22 per cent plunge in 2013, Montreal is expecting to see a modest 1 per cent boost in 2014 (though that number is expected to trail the number of starts reported in recent years).
- The CMHC predicts a 6.5 per cent drop in transactions in the existing home market in 2013, though 2014 will be much more robust with a 7 per cent rise in sales. (Tweet this fact)
- Next year, the Montreal market should remain balanced and in some segments, even favour buyers.