Canada Mortgage and Housing Corporation (CMHC) predicts that Canadian home prices will remain stable with a slight rise in the next two years. See CMHC’s press release here.
Experts have been warning about an overheated real estate market driven by low mortgage rates and high demand in large urban centres such as Toronto. However, “with the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” CMHC deputy economist Mathieu Laberge said in a statement. To view CMHC’s first quarter 2012 Housing Market Outlook in full click here.
It is expected that the average Canadian home will reach $368,900 in 2012, up about 1.5 percent from 2011’s average of $363,365. In 2013, the price will average at $379,000, a 4.3 percent increase over last year’s level
Around 457,300 existing homes are expected to change hands in 2012, moving a little higher in 2013 to 468,200 units.
Housing starts are expected to be around 190,000 units this year and 193,800 units in 2013, the CMHC also predicted.