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Housing starts to cool in 2008: CMHC
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Jack on 03 February, 2008 08:36:00
 
CBC News
Housing starts nationwide are expected to dip to 211,700 units in 2008, owing
to high mortgage carrying costs, the Canada Mortgage and Housing Corp. said
Monday.
In 2007, housing starts reached 228,343 units, an increase of 0.4 per cent over
the previous year, the federal agency said.
Provinces
2007
Actual 2008
Forecasts  		 2009 Forecasts
Newfoundland and Labrador
2,649
2,650
2,675
P.E.I.
750
700
675
Nova Scotia
4,750
4,550
4,500
New Brunswick
4,242
3,925
3,650
Quebec
48,553
46,500
45,375
Ontario
68,123
69,150
67,150
Manitoba
5,738
5,800
5,900
Saskatchewan
6,007
5,600
5,300
Alberta
48,336
39,500
37,750
British Columbia
39,195
33,250
31,700
"Despite some global financial instability with regards to the U.S. housing
market, Canada continues to experience robust employment levels, ongoing income
gains and low mortgage rates," said Bob Dugan, chief economist for the CMHC, in
a release.
"This has strongly supported Canada's housing markets. However, housing starts
are expected to decrease in 2008 mainly due to recent increases in house
prices, which will push mortgage carrying costs higher for home buyers."
The CMHC also said sales of existing homes, which reached 520,000 units in
2007, were expected to fall 3.9 per cent in 2008 to 499,650. A further decrease
to 488,300 units in 2009 is projected as growth in the resale market becomes
more balanced.
British Columbia's housing starts are expected to drop in 2008 from 39,195
units in 2007 to 33,250 units in 2008. Resale price increases, which grew by
12.1 per cent in 2007, will ease to six per cent in 2008 and five per cent in
2009 owing to an influx in listings and fewer resales, the federal agency
forecast.
A drop in net migrants in Alberta is expected to cause a decrease in housing
starts from 48,336 units in 2007 to 39,500 in 2008. Multiple Listing Service
prices, which increased 24.4 per cent in 2007, are expected to increase by 3.9
per cent in 2008 and 5.4 per cent in 2009.