Economic and demographic fundamentals will steer the Canadian housing industry through the second half of 2014 and into 2015, according to Canada Mortgage and Housing Corporation (CMHC), the country's national housing agency.
"Recent trends have shown an increase in housing starts, which is broadly supported by demographic fundamentals. However, our latest forecast calls for starts to edge lower as builders are expected to reduce inventories instead of focusing on new construction,” said CMHC Chief Economist Bob Dugan.
Housing starts in full-year 2014 are expected to be between 179,600 and 189,900 units, with a point forecast of 184,800 units.
Housing starts in 2015 are expected to range from 163,000 to 203,200 units, with a point forecast of 183,100 units.
Multiple Listing Service (MLS) sales in 2014 are expected to be between 450,800 and 482,700 units, with a point forecast of 463,600 units.
MLS sales in 2015 are expected to be between 455,800 to 502,900 units, with a point forecast to 474,300 units.
The average MLS price is forecast to be between CAD $394,700 and $405,700 in 2014 and between CAD $396,500 and $416,900 in 2015.
CMHC's point forecast for the average MLS price calls for a 4.5% gain to CAD $399,800 in 2014 and a further 1.8% gain to $406,800 in 2015.
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