OTTAWA, Ontario, October 30, 2008 — New home construction will moderate from historically high levels, to reach just under 178,000 units in 2009, a level that is consistent with demographic fundamentals, according to Canada Mortgage and Housing Corporation’s (CMHC) fourth quarter Housing Market Outlook, Canada Edition report.
“High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year,” said Bob Dugan, Chief Economist for CMHC. “Housing starts will moderate to 212,200 units in 2008 and 177,975 units in 2009.”
Existing home sales, as measured by the Multiple Listing Service (MLS®)1, which reached a record level of 523,701 sales in 2007, will moderate in 2008 to 452,225 units. In 2009, MLS® sales will move to 433,375 units. Despite a moderation in MLS® sales, demand for existing homes will remain strong by historical standards. With housing markets having become balanced across Canada, the rate of growth in the average MLS® price will moderate. Average prices will reach $306,500 in 2008 and $306,700 in 2009.
As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.
For more information, call 1-800-668-2642
1 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).
Information on this release:
Julie Girard
Media Relations
CMHC
613-748-4684
jgirard@cmhc.ca
Key Housing Market Indicators
| 2007 Actual |
2008 Forecasts |
2009 Forecasts |
|
| Total housing starts (units) | 228,343 | 212,188 | 177,975 |
| Total single-detached houses | 118,917 | 94,263 | 83,600 |
| Total multiple housing units | 109,426 | 117,925 | 94,375 |
| Total MLS® sales2 | 523,701 | 452,225 | 433,375 |
| Average MLS® selling price ($) | 305,707 | 306,500 | 306,700 |
Total Housing Starts
| 2007 Actual |
2008 Forecasts |
2009 Forecasts |
|
| Newfoundland and Labrador | 2,649 | 3,100 | 2,725 |
| Prince Edward Island | 750 | 700 | 600 |
| Nova Scotia | 4,750 | 4,300 | 3,725 |
| New Brunswick | 4,242 | 4,200 | 3,625 |
| Quebec | 48,553 | 47,940 | 42,000 |
| Ontario | 68,123 | 74,450 | 62,000 |
| Manitoba | 5,738 | 5,450 | 5,200 |
| Saskatchewan | 6,007 | 6,500 | 4,900 |
| Alberta | 48,336 | 29,750 | 24,000 |
| British Columbia | 39,195 | 35,800 | 29,200 |
SOURCE: CMHC Housing Market Outlook, Canada Edition, Fourth Quarter 2008.
2 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces.