Winnipeg Free Press - ONLINE EDITION

CMHC scales back housing-starts forecast for Manitoba

  • Print
The national housing agency predicts total starts in Manitoba will decline by 14 per cent to 6,400 units in 2014 from 7,465 in 2013.

WAYNE GLOWACKI / WINNIPEG FREE PRESS Enlarge Image

The national housing agency predicts total starts in Manitoba will decline by 14 per cent to 6,400 units in 2014 from 7,465 in 2013. Photo Store

Canada’s national housing agency has scaled back its housing-starts forecast for Manitoba this year after a weaker-than-expected first half for the local homebuilding industry.

In its latest housing market forecast released today, Canada Mortgage and Housing Corporation (CMHC) predicts total starts in Manitoba will decline by 14 per cent to 6,400 units from an unusually strong 7,465 in 2013.

However, it predicts homebuilding activity will rebound slightly in 2015, with starts increasing by 1.6 per cent to 6,500 units.

The corporation has also scaled back its 2014 expectations for the province’s resale-homes market, although not by much. It’s now forecasting 13,900 MLS sales for this year, instead of the 14,000 it was calling for at the start of the year. However, 13,900 would still be a 1.2 per cent improvement from the 13,735 sales recorded in 2013.

"Equity gains from the past few years will prompt some owners to upgrade their homes," it said, "while elevated active listings will offer more selection to prospective buyers."

The trend towards higher MLS sales activity is also expected to continue in 2015, CMHC said. Sales are expected to hit the 14,100-unit mark, for a 1.4 per cent gain.

In terms of price increases, CMHC predicts the average MLS sales price will climb by 2.1 per cent this year to $266,200 from $260,849 in 2013. And next year it’s expected to rise by a further 2.9 per cent to $273,800.

Nationally, CMHC said Canada’s housing market may start showing some signs of slowing down over the next two years as new construction begins to ease.

It is forecasting housing starts in Canada will range between 179,600 and 189,900 units in 2014 on an annual basis, and drop to a range of between 163,000 and 203,200 units in 2015.

"Recent trends have shown an increase in housing starts, which is broadly supported by demographic fundamentals," said Bob Dugan, chief economist at CMHC.

"However, our latest forecast calls for starts to edge lower as builders are expected to reduce inventories instead of focusing on new construction."

The third quarter outlook also says MLS sales in Canada are expected to range between 450,800 and 482,700 units in 2014, with an average price of between $394,700 and $405,700.

In 2015, the CMHC says MLS sales are expected to range from 455,800 to 502,900 units, with and average price of $396,500 to $416,900.

— Staff/with files by Canadian Press

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Christmas Cheer Board hamper kickoff

View more like this

Photo Store Gallery

  • A young goose   reaches for long strands of grass Friday night near McGillvary Blvd-See Bryksa 30 Day goose challenge- Day 19 - May 23, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A Great Horned Owl that was caught up in some soccer nets in Shamrock Park in Southdale on November 16th was rehabilitated and returned to the the city park behind Shamrock School and released this afternoon. Sequence of the release. December 4, 2012  BORIS MINKEVICH / WINNIPEG FREE PRESS

View More Gallery Photos

Poll

Are you concerned about the death of a seal at the Assiniboine Park Zoo?

View Results

View Related Story

Ads by Google