It appears the Canadian housing construction boom may be over – for now, at least -- with CMHC stating in its Q1 report that housing starts will continue to moderate in 2014 and beyond.
“Overall, housing starts are projected to remain somewhat stable, at 187,300 units in 2014. In 2015, housing starts are expected to moderate to 184,900 units.”
There are currently a great number of housing developments currently under construction and builders are expected to pull back on starting new builds until demand is met," CMHC states in its first quarter housing outlook. "A spike in rates over the course of the year is also expected to affect the market going into 2015.
“The expectation of modest and gradual increases in mortgage rates toward the end of the forecast horizon will also contribute to tempering demand,” the report states. “This, combined with a slowdown in the growth of the pool of first-time buyers in late 2014 and into 2015, will lead to further moderation of housing starts next year.”
The trend is expected to carry on, with housing starts slowly declining following a construction boom two years ago.
“Even with modest improvements in economic conditions in the latter half of 2013, slower employment and income growth in the first half of the year led to more modest housing demand overall,” CMHC states. “As a result, housing starts slowed to a total of 187,923 units in 2013 from 214,827 units in 2012.”
by MBN | 07 Feb 2014
About Me
- Jackie Goodlet, Broker
- GTA, Ontario, Canada
- A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!
No comments:
Post a Comment