Feb. 22, 2013, Ottawa — With continued moderation in housing demand expected in the first half of the year, total annual housing starts are projected to be lower relative to 2012, according to Canada Mortgage and Housing Corporation.
As fundamentals, including employment, economic growth and net migration are expected to gain momentum later in 2013 and in 2014, housing starts are expected to trend slightly higher next year, CMHC reported in its first quarter 2013 Housing Market Outlook, Canada Edition 1 report.
“CMHC expects housing construction activity will trend lower in the first half of 2013, before gaining more momentum by the end of the year as economic and employment growth remain supportive of the Canadian housing market,” said Mathieu Laberge, deputy chief economist for CMHC. “In 2014, improving economic conditions may be partially offset by a slight moderation in the number of first-time homebuyers, and potential small and steady increases in mortgage interest rates.”
On an annual basis, housing starts are expected to range between 178,600 to 202,000 units in 2013, with a point forecast of 190,300 units, following a level of 214,827 units in 2012. In 2014, housing starts are expected to range from 171,200 to 217,000 units, with a point forecast of 194,100 units.
Click here to download the full report.
Print this page
