CMHC Reports Stable Housing Starts for 2014
By Lucas on Nov 06, 2013
Recently, the Canada Mortgage and Housing Corporation (CMHC) posted a report predicting stable housing starts and rising MLS prices and sales for 2014. High employment and migration continue to be the main pillars supporting the Canadian housing market.
“In the new home market, builders are nevertheless expected to limit the number of housing starts while inventories of unabsorbed units, completed and under construction, are drawn down,” said Mathieu Laberge, Deputy Chief Economist for CMHC. “In the resale market, home buyers have been motivated to advance their purchases and lock-in pre-qualified mortgages given the recent moderate increase in mortgage rates. It is expected that existing home sales will increase modestly in 2014 with improving economic conditions.”
The range of housing starts expected for 2013 was from 179,300 to 190,600, with a point forecast of 185,000. In 2014, we should expect to see between 163,700 and 205,700 housing starts, with a point forecast of 184,700.
Totals MLS sales for 2013 is expected to range from 439,400 to 474,000 for 2013, with a point forecast of 456,700. That’s just a few more than we saw in 2012 (454,005). For 2014, CMHC says that there will probably be between 438,300 and 498,100 MLS sales, with a point forecast of 468,200.
Sales aren’t the only thing expected to rise in 2014. The average MLS price for 2013 looks like it will range from $372,300 to $383,700. 2014’s price range is expected to span from $374,100 to $396,300.
Housing starts will remain stable, prices will rise gradually, and sales are expected to rise as well. So, what does this mean for the Canadian housing market? It means we didn’t have the tragic 2013 that was foretold by many a pundit, and that 2014 might be even better.
