CMHC: Canadian Housing Market to Remain Steady in 2012 & 2013

Today saw the release of the Canadian Mortgage and Housing Corporation’s Housing Market Outlook (First Quarter 2012).  Overall the CMHC is predicting that Canada with see two steady years in the housing market.  The report points to low mortgage rates, increased migration, and lower unemployment rates in both 2012 and 2013 as key trends affecting housing in Canada.

The report also points out that in regards to the Rental Market, “The rental apartment vacancy rate in Canada’s 35 major centres decreased to 2.2 per cent in October 2011. For 2012, the vacancy rate is forecast to be unchanged.”  Pointing out that, “Higher levels of youth employment (under 25 years of age), which likely increased household formation among young adults, supported rental housing demand.” In respect to Toronto it states, “Rental market conditions will remain supportive of low vacancy rates in 2012, holding the average for the GTA to 1.3 per cent.” 

Below you will find the press release from the CMHC as well as a link to the full report.

Canadian Housing Market to Remain Steady

OTTAWA, February 13, 2012 — Housing markets are expected to remain steady in 2012 and 2013, according to Canada Mortgage and Housing Corporation’s (CMHC) first quarter 2012 Housing Market Outlook, Canada Edition1.

“With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” said Mathieu Laberge, Deputy Chief Economist for CMHC.

Housing starts will be in the range of 164,000 to 212,700 units in 2012, with a point forecast of 190,000 units. In 2013, housing starts will be in the range of 168,900 to 219,300 units, with a point forecast of 193,800 units.

Existing home sales will be in the range of 406,000 to 504,500 units in 2012, with a point forecast of 457,300 units. In 2013, MLS®2 sales are expected to move up in the range of 417,600 to 517,400 units, with a point forecast of 468,200 units.

The average MLS® price is forecast to be between $330,000 and $410,000 in 2012 and between $335,000 and $430,000 in 2013. CMHC’s point forecast for the average MLS® price is $368,900 for 2012 and $379,000 for 2013. The moderate increases in the average MLS®price are consistent with the balanced market conditions that occurred in 2011, and that are expected to continue in 2012 and 2013.

Click here for the full report.


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