Housing market outlook still up sharply from 2012: CMHC
Canada Mortgage and Housing Corp.’s forecast for Red Deer’s housing market continues to improve.
The national housing agency said in its third quarter housing market outlook, which it released on Thursday, that there will be 690 residential starts in Red Deer this year and 715 in 2014. Both figures have risen with each quarterly update by CMHC, and are up sharply from the 2012 total of 568 starts.
Single-detached houses are expected to number 365 this year and 385 the next, as compared with 326 in 2012. In the case of units in multi-family projects, the tally is projected to hit 325 in 2013 and then rise to 330 the year after that. Last year, starts on multi-family homes totalled 242.
When it comes to the local resale market, CMHC has also boosted its count. It now anticipates 4,700 deals in 2013 and 4,900 in 2014, improving on the 4,304 Multiple Listing Service transactions recorded in Central Alberta last year.
The average resale price this year is expected to hit $295,000, and then climb to $301,000 in 2014. Last year, the average was $279,180.
In the analysis that accompanied its report, CMHC said increased sales in the resale market is spurring new home construction in Alberta. It does not expect construction of replacements for flood-damaged homes to impact its forecast.
CMHC said that an influx of migrants to Alberta and full-time job growth are increasing housing demand and pushing the MLS sales count upward. Higher demand relative to supply has put pressure on prices, with real estate values predicted to increase this year and next.
In some areas, the resale market has been impacted by June’s flooding but is expected to normalize over time.
On the national front, CMHC said the western provinces are helping to stabilize construction activity. But it’s still lowered its Canadawide estimate for 2014.
“CMHC expects single-detached units and housing units built in the western provinces to account for a higher share of total housing starts over the forecast horizon,” said Mathieu Laberge, CMHC’s deputy chief economist.