The Canadian Housing Market Overview for 2013

Canadian Market: Overview

 

Resales: According to CMHC the market will be relatively stable in 2013, but rise along with economic conditions in 2014. The forecast for pricing on MLS should be equal to inflation, or slightly below, in 2013 and 2014. The average MLS® price is expected to rise to $367,500 in 2013 and then to $377,300 in 2014.

 

Housing Starts: Total housing starts are forecast to decline in 2013 in Ontario before rising modestly in 2014. Improving employment, economic growth and net migration in 2014 will help stabilize or support modest rebounds in housing starts in 2014 for most provinces. 

(Housing starts is an economic indicator that reflects the number of privately owned new houses (technically housing units) on which construction has been started in a given period.)

 

OVERALL: The Key Factors as outlined by CMHC have noted an expected increase of 1.6% employment rate, overall increase in net migration and in Economic growth which are the key factors in maintaining a stable housing market. Their next report will compare up to date statistics to  the estimations made by CMHC of these three key factors. In addition, CMHC identifies a improving U.S. economy will benefit Ontario’s labour market. Keep a close eye on the U.S economy as it has significantly decrease its growth rate since 2012.

 

 

Key forecasts in Ontario

 

Price forecasted  MLS® price is $382,200 for 2013 and $390,000 for 2014.

 

sales expected to moderate to 191,300 units in 2013.

 

Single-detached starts will reach 23,300 and 24,600 units in 2013 and 2014, respectively

Contact me today to discuss current market conditions in YOUR neighbourhood.