Quebec will see less new building sites in 2009 for its residential construction, according to a forecast from the Canadian Mortgage and Housing Corporation (CMHC), which has just published its perspectives on the housing market, released in the fourth quarter of 2008.
42 000 new construction sites should be registered on the territory of Quebec next year, and this diminution, compared to the year 2008 (which should finish with 48 000 new foundations), will be caused by an economic slowdown, this current year and next year, combined with an increase of supply in certain market components.
The federal organism announces that the economy of the Province owes its recent expansion to expenses made in consumption and in public investments.
« Public expenses devoted to infrastructure works should barely suffer from the economic situation abroad, but consumers could keep their purses less open because of a shrinking labour market. »
In Quebec, economic growth of 1,2 % is expected in 2009 whereas employment would grow by 0,6 % only.
Mortgage rates should remain relatively stable, for the last part of 2008 as well as during the first half of 2009. Afterwards, a slight increase should be expected.