Canadian Housing Outlook Expected To Moderate Through the Second Half of 2012
July 31, 2012
The CMHC (Canadian Mortgage and Housing Corporation) has recently released their 2012 Q2 report which shed light on what Canadians can expect in certain housing markets for the second half of 2012.
Below are some of the more notable portions of the report:
Balanced market conditions are expected in most local markets across Canada over the course of 2012 and 2013. Growth in the average MLS® price is expected to slow, broadly in line with inflation, over the forecast horizon. The forecast calls for an average price of $372,700 in 2012 and $383,600 in 2013
MLS Sales Expected to Move Higher
On an annual basis, sales of existing homes through the Multiple Listings Service® (MLS®) are expected to move upwards in 2012 and rise slightly in 2013. CMHC’s point forecast is 472,300 MLS® sales for 2012 and 474,900 for 2013. Sales are being driven higher due to stronger economic prospects in Canada’s western provinces, with Saskatchewan leading the way at 12.6 per cent growth.
RISKS TO THE OUTLOOK
Upside Risks include:
Recent statements by the U.S Federal Reserve and Eurozone measures may signal favourable economic and housing market conditions.
Should U.S economic measure progress more quickly than expected, exports from Canada to the U.S could increase higher than forecast; this could continue to support a stronger Canadian housing market.
Downside Risks include:
Recent financial uncertainty that could translate to slower job growth and and could impact interest rates.
Eurozone countries experiencing economic woes may find themselves importing fewer products from Canada. Fewer Canadian exports could dampen the economic output in regions focused on manufactured goods.
These are just some of the topics mentioned in the CMHC Housing Outlook report. The CMHC Housing Outlook report is a great read for Canadians interested in the futures of our Canadian housing markets and more.
If you would like to have an entire copy of the report, feel free to contact MonsterMortgage.ca directly at 416-480-0234 or by filling out a contact request.