According to the latest forecasts conducted by Canada Mortgage and Housing Corporation (CMHC), recent economic growth, favourable borrowing conditions and sustained positive net migration will again support new home construction in 2012.
"An easing resale market will lessen the demand for new homes. Accordingly, 48,000 housing starts are expected this year, followed by 44,500 in 2012," said Kevin Hughes, CMHC Regional economist for the province of Quebec.
For most of 2010, new construction of single detached homes benefited from the improved economic and financial environment, as well as from the reduced supply of such homes on the resale market. However, the rising popularity of multi-family housing and densification trends will cool this market segment. As a result, close to 17,000 single detached homes will be started in 2011, with a three per cent increase expected in 2012 to 17,400 units.
Following a strong rebound in 2010, starts of multi-family dwellings will settle back to more sustainable levels over the course of the next two years. Nonetheless, multiple starts will reach 31,100 units in 2011. Given the current supply of condominium apartments on the market, starts of multi-family homes will slow to the 27,100 unit level in 2012.
MLS® sales are expected to record a lower level of activity than in the previous year. However, resale activity will pick up during the last part of 2011 as the housing stock continues to grow. As a result, close to 77,000 MLS® sales are forecast for 2011 and over 79,000 in 2012.
Relatively stable demand for resale homes, combined with rising supply, will take some pressure off prices over the course of the next year. With a return to more balanced conditions, price growth in the resale market will moderate over the course of 2011 and in 2012. The average MLS® price is expected to be $251,200 in 2011 and $257,400 in 2012.
"An easing resale market will lessen the demand for new homes. Accordingly, 48,000 housing starts are expected this year, followed by 44,500 in 2012," said Kevin Hughes, CMHC Regional economist for the province of Quebec.
For most of 2010, new construction of single detached homes benefited from the improved economic and financial environment, as well as from the reduced supply of such homes on the resale market. However, the rising popularity of multi-family housing and densification trends will cool this market segment. As a result, close to 17,000 single detached homes will be started in 2011, with a three per cent increase expected in 2012 to 17,400 units.
Following a strong rebound in 2010, starts of multi-family dwellings will settle back to more sustainable levels over the course of the next two years. Nonetheless, multiple starts will reach 31,100 units in 2011. Given the current supply of condominium apartments on the market, starts of multi-family homes will slow to the 27,100 unit level in 2012.
MLS® sales are expected to record a lower level of activity than in the previous year. However, resale activity will pick up during the last part of 2011 as the housing stock continues to grow. As a result, close to 77,000 MLS® sales are forecast for 2011 and over 79,000 in 2012.
Relatively stable demand for resale homes, combined with rising supply, will take some pressure off prices over the course of the next year. With a return to more balanced conditions, price growth in the resale market will moderate over the course of 2011 and in 2012. The average MLS® price is expected to be $251,200 in 2011 and $257,400 in 2012.