CMHC Forecasts Housing Market Cool Down in 2016 and 2017

October 26, 2015

The Canadian Mortgage Housing Corporation predicts that the country’s housing market will cool down over the next two years (2016 and 2017) as the sales of existing homes and new home construction slow down.

CMCH chief economist Bob Dugan stated that the housing markets in Ontario and British Columbia have benefits this year from rejuvenated exports, lower gas prices and record-low interest rates but these effects will wear off in coming years. The agency predicts that the prices of homes will continue to climb over the next two years, but at a much slower rate – 1.3 per cent in 2016 and 1.4 per cent in 2017.

CMHC stated that new home construction will also decline with housing starts hitting 186,990 this year before dropping to 178,150 next year and 173,650 in 2017. The residential construction sector will have to face high number of newly build, unsold condos that “encourage some builders to channel demand for new housing towards existing inventory”.

Reference: The Globe and Mail

www.theglobeandmail.com/…/cmhc-sees-housin…/article26970121/