Everything is going to slow down a bit, from now on until the end of 2008 and during the year 2009, in the housing sector in Quebec and in the region of Montreal, if one relies upon the indications of the economists of the Canadian Mortgage and Housing Corporation (CMHC), an organism which held its 14th annual conference on the housing market perspectives at the Palais des Congrès in Montreal.
Quebec weathers it all quite well in spite of the bad news coming from our neighbours to the South, but one will see a diminution of new construction sites and a contraction of the resale market, but the specialists of the CMHC remain nevertheless optimistic with regard to the future, because they think that the housing market has a solid reputation in Canada and, more in particular, in Quebec and in the region of Montreal.
One will see a regression of residential construction, in particular at the level of new construction sites of individual homes, whereas one should expect a regression of these by 9 % in 2009. A similar situation will occur in collective housing with a regression of 15 %, but the market of condos will continue to progress.
In the resale market, one forecasts a diminution in almost all of its components. Only the co-ownership component will continue to grow, however, because affordability has a lot to do with it. Quebecers are still very keen about condos in the region of Montreal and even in the other cities of Quebec. The market will still remain favourable for salespersons in 2009, in all of its components.
Vacancy rates for traditional private rental dwellings will grow to 3,3 % in 2009 for the Montreal region, whereas it was at 3,1 % in 2008.
Finally, a quieter period must be expected concerning new residential construction for elderly people because supply is much higher than demand, even if our population is growing older. The stocks keep growing and there will be enough supply to satisfy demand for almost one year and a half. One expects a vacancy rate of 7,9 % in 2009 in residences for elderly people in the Montreal CMA.