Canada's housing market will continue to moderate going into 2013, says the Canada Mortgage and Housing Corporation's Q4 2012 Housing Market Outlook.
Activity is expected to hold steady over the next few months, leading to house price growth possibly below inflation.
"A weaker outlook for global economic conditions and the waning of the effect of pre-sales from late 2010 and early 2011—which contributed to support multi-family starts this year—will bring moderation in housing starts next year," says Mathieu Laberge, deputy chief economist for CMHC.
Nevertheless, employment growth and net migration will help support housing starts activity going forward, she says.
On an annual basis, housing starts will be in the range of 210,800-to-216,600 units in 2012, with a point forecast of 213,700 units. In 2013, housing starts will be in the range of 177,300-to-209,900 units, with a point forecast of 193,600 units.