According to the fourth quarter release of the Canada Mortgage and Housing Corporation’s 2015 Housing Market Outlook, housing markets are expected to moderate next year and into 2017.
“In 2015, increased housing market activity in provinces like Ontario and British Columbia – provinces that have benefited from declining energy prices, a lower Canadian dollar and continued low mortgage rates – offset slowdowns in oil-producing provinces like Alberta,” said the Chief Economist for the Canada Mortgage and Housing Corporation, Bob Dugan. “We expect, however, that this counterbalancing effect will decrease over time. As such, housing starts and MLS sales are projected to moderate in 2016 and 2017.”
The point forecast of housing starts in 2015 is 186,900 units, dropping to a point forecast of 178,150 units in 2016. In 2017, the number of housing starts across Canada is expected to hit a point forecast of 173, 750.
Sales across Canada are expected to reach a point forecast of 494,700 units this year, dropping to 479,500 in 2016 and further to 476,000 in 2015.
Meanwhile, the average selling price for a home in Canada in 2015 is expected to be a point forecast of $437,700, increasing to $443,000 and then $449,600 in 2016 and 2017.