MONTREAL, QUEBEC -- (Marketwire) -- 02/22/13 -- According to the latest forecasts conducted by Canada Mortgage and Housing Corporation (CMHC), moderate economic growth and still favourable borrowing conditions and demographic trends will continue to support housing demand in Quebec in 2013 and 2014, but not at the same pace as in 2011 and 2012. "An easing resale market and strong supply will translate into lower demand for new homes," said Kevin Hughes, CMHC Regional economist for the province of Quebec.
In 2013, moderate job growth, the continued easing of the resale market and the trend toward the multi-family dwelling will again reduce single starts and translate into a total of 15,000 single-detached homes started in 2013 and 14,600 in 2014. This market segment is still affected by the rising popularity of the more affordable multi-family homes and densification trends.
Fuelled by the popularity of condominium apartments, supply of multi-family dwellings is currently strong. Following three years of sustained construction from 2010 to 2012, market conditions in this market are now easing. Starts of multi-family dwellings will settle back in the coming years. Multiple starts will move to 27,300 in 2013 and 27,600 in 2014.
After holding steady in 2012, sales recorded by Centris® will come in at a slightly lower level this year. For 2013, 75,800 such transactions are forecast. Notwithstanding the overall economic impacts discussed previously, the growing housing stock will sustain sales volumes. As a result, total resales will be back in growth mode next year. In total, over 79,000 Centris® sales are forecast for 2014.
Relatively lower demand for resale homes, combined with rising supply, has taken pressure off price growth in recent quarters and should continue to do so throughout this coming year. With a return to more balanced conditions, price growth in the resale market will continue to moderate in 2013. The average price recorded by Centris® will reach $270,100.
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
For more information, visit www.cmhc.ca or call 1-800-668-2642.
CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.
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CMHC - Communications
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