Housing starts will see a surge in the second half of the year as the real estate market continues to show increasing signs of life. This was reported in a forecast the Canada Mortgage Housing Corporation (CMHC) released on September 3rd.
Starts are expected to reach 141,900 for the year and increase to 150,300 for 2010.
Due to the economic uncertainty and lower levels of unemployment we saw in the first half of the year, it hindered housing construction, however with more stable conditions, it is definitely looking better.
For the second half of 2009 and the beginning of 2010, you can expect the housing markets to strengthen further.
The best growth prospects will be seen in Ontario, Hamilton, Thunder Bay and Kitchener new home markets. These are the centres which represent the tightest resale markets, according to the federal housing agency.
The forecast for average prices are expected to moderate to $301,400 in 2009 and $306,300 in 2010.
With high levels of affordability, it will mean the demand for detached housing will continue in the short term. However there will be a short to more inexpensive multi-family housing in the next year as affordability erodes.
It is expected that existing home sales will reach 420,700 units this year and should remain slightly below the aforementioned level in 2010.
Nelson Goulart
Broker of Record with Signature Service GMAC Real Estate
www.ssgmac.ca
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