Construction next year should be pretty much in line with 2014 according to new figures from the CMHC. “The trend for housing starts has been up in recent months, particularly in multi-unit structures. This has been broadly supported by key factors such as employment, disposable income and net migration, which are expected to continue to be supportive of the Canadian housing market over the 2014-2016 forecast horizon,” said Bob Dugan, Chief Economist for CMHC. The building of condos is likely to moderate during the early part of next year but that will be offset by an uptick in new single-unit starts. The agency predicts that there will be more general moderation in 2016 assuming economic conditions stay roughly in line with expectations.
Most markets to see increased prices over next 12 months
Data from CMHC has revealed predictions for house prices and sales levels over the next 2 years with most markets continuing to see price rises. Those increases are predicted to be broadly in line with current levels. There are two areas where declines are forecast; New Brunswick and Prince Edward Island. New data from Statistics Canada due today will shed more light on the state of the economy which could result in revised forecasts for housing.