According to CMHC’s second quarter 2014 Housing Market Outlook, Canada Edition1, economic and demographic fundamentals continue to be supportive of new building activity. However, builders are expected to continue to adjust activity, particularly with respect to multi-units, in order to manage inventory levels.
“Builders are expected to continue to manage their starts activity in order to ensure that demand from buyers seeking new condominium units is first channeled toward unsold completed units or unsold units that are currently under construction,” said Mathieu Laberge, Deputy Chief Economist for CMHC.
On an annual basis, housing starts are expected to range between 172,300 and 189,900 units in 2014, with a point forecast of 181,100 units, down from 187,923 units in 2013. In 2015, housing starts are expected to range from 160,600 to 203,600 units, with a point forecast of 182,100 units.
Multiple Listing Service® (MLS®2) sales are expected to range between 428,100 and 487,700 units in 2014, with a point forecast of 457,900 units, marginally changed from 457,338 in 2013. In 2015, sales are expected to range from 441,800 to 500,400 units, with an increase in the point forecast to 471,100 units.
The average MLS® price is forecast to be between $386,400 and $405,600 in 2014 and between $388,200 and $416,200 in 2015. CMHC’s point forecast for the average MLS® price calls for a 3.5 per cent gain to $396,000 in 2014 and a further 1.6 per cent gain to $402,200 in 2015.
As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.