Canadian housing starts forecast to stabilize in 2012 as economic fundamentals remain positive; existing-home sales to modestly increase to 509,000 units: CMHC

OTTAWA , November 4, 2011 (press release) – Housing starts are forecast to stabilize into 2012, according to Canada Mortgage and Housing Corporation’s (CMHC) fourth quarter Housing Market Outlook, Canada Edition.

“Despite continued uncertainty in the global economy, Canada’s economic fundamentals remain positive, particularly with respect to interest rates, employment and immigration. These factors will continue to support Canada’s housing sector in 2012,” said Mathieu Laberge, Deputy Chief Economist for CMHC.

Housing starts will be in the range of 170,900 to 199,900 units in 2011, with a point forecast of 191,000 units. In 2012, housing starts will be in the range of 161,650 to 206,350 units, with a point forecast of 186,750 units.

Existing home sales will be in the range of 423,600 to 470,100 units in 2011, with a point forecast of 450,100 units. In 2012, MLS® sales are expected to move up modestly in the range of 406,100 to 509,000 units, with a point forecast of 458,500 units.

The average MLS® price is forecast to be between $353,100 and $375,300 in 2011 and between $315,800 and $418,700 in 2012. CMHC’s point forecast for the average MLS® price is expected to move up to $363,900 in 2011, while 2012 will see a more moderate increase to $368,200. The increase in the average MLS® price is consistent with the balanced market conditions that have occurred so far in 2011, and that are expected next year.

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.

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