New building activity is solid in Canada’s housing sector, finds CMHC’s Q2 Housing Market Outlook.
However, builders are expected to continue to adjust activity levels, particularly with respect to multi-units, in order to manage inventory levels.
They’ll “ensure demand from buyers seeking new condominium units is first channeled toward unsold, completed units or unsold units that are currently under construction,” says Mathieu Laberge, deputy chief economist at CMHC.
On an annual basis, housing starts are expected to range between 172,300 and 189,900 units in 2014, with a point forecast of 181,100 units. That’s down from 187,923 units in 2013.
In 2015, housing starts are expected to range from 160,600 to 203,600 units, with a point forecast of 182,100 units.
As well, multiple listing service sales are expected to range between 428,100 and 487,700 units in 2014, with a point forecast of 457,900 units.
The average home price is forecast to be between $386,400 and $405,600 in 2014, and between $388,200 and $416,200 in 2015. Overall, CMHC predicts prices will rise by about 3.5% this year and 1.6% next year.