It was just yesterday that we talked about how well cottage sales are doing (already!) this year, and now it looks as though sales in the rest of the Canadian real estate world are going to be doing just fine as well. This, at least, according to Canada Mortgage and Housing Corporation’s first quarter 2012 Housing Market Outlook report.
The report states that though many people are concerned about rising home values and Canada getting itself into a potential real estate bubble, home values are set to remain the same. And not just this year, but for 2013 as well. Mathieu Laberge, Deputy Chief Economist for CMHC, also stated along with the release, “With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 for both new home construction and sales of existing homes will stay close to levels seen in 2011.”
So just how much activity can we expect to see?
In 2012, housing starts are projected to be anywhere from 164,000 to 212, 700 while in 2013 they are expected to be slightly over that with a range of 168,900 to 219,300. The amount of homes going to be sold is also going to remain steady, with that projected forecast for this year being 406,000 to 504,500 in total units sold. In 2013, sales are expected to climb just slightly as well, with an expected range of about 417,600 to 517,400 units being sold.
But, this is the big question, the one that makes the home equity world spin, and home buyers worry about a housing bubble: how much will those homes be worth in the upcoming two years?
According to the report, those are going to remain steady as well for the next two years, which would indicate that Canada is not in fact, in a housing bubble and that Ottawa and Toronto mortgages are going to remain relatively similar to what they are now. The average home on MLS in 2012 is going to cost anywhere from $330,000 to $410,000 in 2012 and in 2013, average home prices will be between $335,000 and $430,000 in 2013. The report also specifically states these increased levels as “moderate” and “consistent with the balanced market conditions that occurred in 2011.”
There. That should be enough to put the kibosh on any more talk of a bubble.
