Housing correction not in the cards, according to CMHC report
Posted: Aug 24 2011 Topic:
A much anticipated correction in the Canadian housing market is not in the cards, according to a report by the Canada Mortgage and Housing Corp.
In its third-quarter market outlook, the nation housing agency forecasts that Canada’s housing market will ease slightly but “remain steady” this year and next.
“Housing starts have been strong in the last few months, but are forecast to moderate closer in line with demographic fundamentals,” Mathieu Laberge, deputy chief economist for CMHC, saiid Wednesday. “Despite recent financial uncertainty, factors such as employment, immigration and mortgage rates remain supportive of the Canadian housing sector.”
In fact, CMHC revised up its outlook for 2011 housing starts to 183,200 units from 179,500 in its second quarter report. It forecasts the number will climb in 2012 to 183,900 units, slightly lower than its second-quarter forecast of 185,300.
In 2010, there were 189,930 housing starts.
CMHC also forecasts existing home sales will total 446,700 units in 2011 — the same level as in 2010 — and rise “modestly” to 458,000 units in 2012.