Winnipeg Free Press - PRINT EDITION
Posted: 06/26/2013 1:00 AM | Comments: 0
A slow start to the year has prompted Canada's national housing agency to downgrade its forecast for Winnipeg's resale-homes market for 2013, although it's still predicting another banner year for local homebuilders.
In its spring 2013 forecast released on Tuesday, Canada Mortgage and Housing Corporation (CMHC) predicts Multiple Listing Service (MLS) sales will decline by 2.4 per cent to 11,800 units this year from 12,094 in 2012.
But despite the anticipated drop in sales, CMHC still predicts the average selling price of a home will to climb over the next two years.
"A reduction in existing-home sales has resulted in an increase in active listings and a continued move toward a balanced market," it said. "Under these conditions, expect price growth to moderate to 4.3 per cent in 2013 to an average of $266,000, followed by a 3.1 per cent increase to $274,300 in 2014."
The corporation said weaker sales activity in the first quarter of this year will take a bite out of the year's sales total.
"We created a bit of a deficit in the spring with the sales we had," said Dianne Himbeault, CMHC's senior market analyst for Winnipeg.
And while last month's increase in sales volume is expected to continue in the second half of the year, she said it's unlikely the rebound will be strong enough to boost the yearly total to last year's level.
Looking further ahead to 2014, CMHC said MLS sales are expected to continue to improve, posting a modest increase of 1.7 per cent to 12,000 units.
On the new-homes front, CMHC is standing by its earlier prediction housing starts in the Winnipeg Census Metropolitan Area will increase by 4.6 per cent to 4,250 units this year from 4,065 in 2012.
It said the increased building activity will be evident on both sides of the market, with single-family starts forecast to grow by 3.3 per cent to 2,200 units, and multiple-family starts expected to climb by 5.9 per cent to 2,050 units.
"Population and employment increases, combined with low mortgage rates, will prompt homebuilders to increase production levels this year," Himbeault, said. "Increasing inventories will inhibit growth moving forward, keeping total starts at the same level in 2014."
Nationally, CMHC said Canadian builders appear poised to pick up the pace of residential construction in the later half of 2013, but the total number of starts will remain below last year's level.
The corporation estimates between 173,300 and 192,500 units of housing -- including single- and multiple-family dwellings -- will be started this year, with a mid-point forecast of 182,900 units. That's down nearly 15 per cent below the 2012 level of 214,827 units.
The agency also says sales of existing homes are expected to range between 412,000 and 474,800 units in 2013, with a mid-point forecast of 443,400 units, down from the 2012 level of 453,372 sales.
The average MLS price is forecast to be between $359,400 and $380,000 in 2013.
-- with files by The Canadian Press
Republished from the Winnipeg Free Press print edition June 26, 2013 B5
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.
Having problems with the form?Contact Us Directly
Google's pivotal IPO launched a decade of big bets
Whitecap making $266.7M acquisition
Watchful lawyer exposes imposter scam
UPS says 51 retail stores breached by malware
San Gold and Kerr Mines set to merge
Provincial government's poor financial outlook negatively impacts City of Winnipeg: study
Fitch affirms Canada's AAA credit rating
Texas regulators OK expanding nuclear waste site
Most actively traded companies on the TSX
Brookfield Asset Management cuts stake in WEF
Feds say oil spill sheen dissipating in Ohio River
Cargill fined for Alberta environmental breach
How the Dow Jones industrial average did Wednesday
Hertz and American Eagle are big market movers
Free the booze, drink in the profits: study
DENSO fined $2.45M for bid rigging
Spectrum changes could limit access:Xplornet
MLB online chief optimistic on relaxing blackouts
Canadian housing market in for a cool down: RBC
B ofA reaches $17B settlement with US
Some Fed officials want to slow economic help soon
Fact sheet: Infiniti QX60
Travel journalists descending on Winnipeg for Canadian Tourism Commission event
Cowboys worth more than $3 billion, tops in NFL
Libya's largest oil depot begins exports
Reward offered for former billionaire's assets
Mormon school removes gay-marriage cards at store
Chip maker Infineon to buy California firm for $3B
Brine firm sues over biblical fracking billboard
Warren Buffett's firm to pay $896,000 penalty
Yellen to give her outlook as Fed honeymoon fades
US warns travellers of cancelled Venezuela flights
Trading in US stocks subdued ahead of Fed minutes
McCain Foods sells frozen pizza business
Grain lower, livestock lower
Dubai's Nakheel to pay $2.1 billion in debt early
Pet-friendly dating sites match up people, pooches
Missing Ontario journalist found dead
Apple's stock bounces back to hit a new high