OTTAWA, ON - Canada's new home construction market is expected to continue to moderate moving into 2013, according to the Canada Mortgage and Home Corporation (CMHC).
“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," said Mathieu Laberge, deputy chief economist for CMHC. "Nevertheless, employment growth and net migration will help support housing starts activity going forward.”
The pace of housing starts on a seasonally adjusted rate declined to 218,392 units in October, down 2.6% from September. This decrease was most directly related to housing start declines in Quebec and the Prairier, CMHC said.
CMHC said viewed on an annual basis, housing starts will end 2012 in the range of 210,800 to 216,600 units, with a point forecast of 213,700 units. CMHC projects housing starts in 2013 to be in the range of 177,300 to 209,900 units, with a point forecast of 193,600 units.
CMHC, Canada's national housing agency, forecasts a slight increase of existing home sales in 2013. The agency said its point forecasts for 2012 and 2013 home sales are 457,400 and 461,500 respectively. The average multiple listing sale (MLS) price is forecast to be between $363,200 and $367,000 in 2012 and between $363,100 and $377,900 in 2013.