Canada’s housing sector is slowing
Posted February 14, 2012 7:16 am.
This article is more than 5 years old.
Canada’s housing sector is slowing but the average home price is still expected to rise in the next two years, according to the Canada Mortgage and Housing Corporation (CMHC).
“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,” said Mathieu Laberge, deputy chief economist for CMHC.
An average of 190,000 new homes will be built in 2012, and that number will increase slightly to 193, 800 in 2013. Meanwhile, the average price of a home will hit $368,900 for 2012 and $379,000 for 2013, the agency predicted in its first quarter report.
Experts have been predicting the slowdown for months as household debt levels hit record highs. However, low mortgage rates have kept demand high.
“Ontario’s housing activity is entering 2012 with momentum, but will likely succumb to the slowing profile for economic growth and job creation in Ontario,” Ted Tsiakopoulos, CMHC’s Ontario regional economist, said in a statement.
“Housing activity however should remain steady thanks to record low interest rates,” Tsiakopoulos added.
