News Column

Housing starts to stabilize as interest rates rise and demand slows: CMHC

February 6, 2014

OTTAWA _ Canada Mortgage and Housing Corp. says it expects housing starts to stabilize in 2014 and 2015. It says improved economic and demographic fundamentals will be tempered by a combination of a modest and gradual increase in mortgage rates and a slowdown in demand from first-time buyers. The corporation's first-quarter housing outlook estimates about 187,300 housing starts in 2014, with a range of between 176,600 and 199,800 units on an annual basis. That's relatively unchanged from 187,923 units in 2013. In 2015, CMHC estimates about 184,900 units, with a range from 163,200 to 206,600 units. The outlook says sales through the Multiple Listing Service , run by Canada's main real estate boards and realtors, are expected to rise in both 2014 and 2015. It also predicts that MLS prices will be up 2.1 per cent this year, with a further 1.7 per cent increase in 2015.


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Source: Canadian Press DataFile


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