The Canada Mortgage and Housing Corp., the national housing agency, just announced their predictions that home construction growth will remain steady through 2015, mirroring demographic and economic trends. The report stated that “economic conditions in Canada are forecast to gradually improve in the short-term and lead to modest increases in employment and average earnings, which should support housing demand.”
However, they are forecasting “some moderation” in housing demand for 2016 and that “the positive effect of improving economic conditions on new construction activity will be offset by a number of factors.” Some factors include a deceleration in the pace of construction, a fall in young, first-time home buyers as a result of slower population growth, and an expected increase in interest rate in late 2015.
Similar trends are expected within the resale market sector. The CMHC predicts improving economic conditions to bring about a moderate boost in sales through the MLS system in 2014 that will continue through 2015 and subsequently cool off in 2016 due to the expected decrease in first-time buyers.
Do you have more questions about the real estate market? Or are you trying to decide what the best time is to sell or purchase a home? Speak to a knowledgeable and experienced Century 21 King’s Quay realtor today to learn more.