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Forecast: Canadian Housing Starts to Stabilize
Sep 13, 2013
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Total Canadian housing starts are expected to be lower in 2013 than in 2012 after a moderate first half of 2013, according to the country's national housing agency, Canada Mortgage and Housing Corporation (CMHC).

CMHC sees Canadian housing starts stabilizing in the second half of 2013 and then show some increase in 2014. Canadian employment and economic growth is expected to improve in 2014.

Housing starts are expected to be 182,800 units (in the range of 177,100 - 188,500 units) in 2013, putting the year down from 214,827 units in 2012. Housing starts in 2014 are expected to be 186,600 units (between 165,600 - 207,600 units).

Multiple Listing Service sales are expected to be 448,900 units (between 431,600 - 466,200 units) in 2013. This will put the year about equal with 2012's 453,372. MLS Sales in 2014 are expected to be 467,600 units (between 437,700 - 497,500 units).

The average MLS price is forecast to be between CAD $369,100 and CAD $380,500 in 2013 and between CAD $371,700 and CAD $393,900 in 2014. CMHC's point forecast for the average MLS price expects a 2.7% gain to $374,800 in 2013 and a further 2.1% gain to $382,800 in 2014.

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