Canadian Housing Market to Moderate into 2013

Canada's new and existing home sales should slow through the end of 2012 and into 2013, according to Canada Mortgage and Housing Corporation's (CMHC) third quarter 2012 Housing Market Outlook, Canada Edition (based on information available as of July 25, 2012).

"Canada's housing markets are expected to moderate over the rest of 2012 and into 2013 after showing sustained activity levels, specifically in the multiples segment, over the first half of 2012," said Mathieu Laberge, deputy chief economist for CMHC. "Balanced market conditions in most local housing markets will result in a slowing in house price growth as well."

On an annual basis, housing starts will be in the range of 196,800 to 217,000 units in 2012, with a point forecast of 207,200 units. In 2013, housing starts will be in the range of 173,000 to 207,400 units, with a point forecast of 193,100 units.

Existing home sales will be in the range of 442,300 to 485,200 units in 2012, with a point forecast of 466,600 units. In 2013, MLS sales are expected to move up in the range of 440,500 to 487,600 units, with a point forecast of 469,600 units.

The average MLS price is forecast to be between $351,300 and $378,400 in 2012 and between $358,000 and $395,800 in 2013. CMHC's point forecast for the average MLS price is $368,000 for 2012 and $377,300 for 2013.

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