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House prices will remain stable through 2011, then rise in 2012: CMHC

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guest | 25 Aug 2011, 02:08 PM Agree 0

CMHC said the average MLS price will plateau through 2011 to an average of $367,500, and then rise 1.3% to reach $372,400 in 2012.“Despite recent financial uncertainty, factors such as employment, immigration and mortgage rates remain supportive of the Canadian housing sector,” said Mathieu Laberge, deputy chief economist for CMHC.The CMHC report is the latest to predict moderate gains in the market through 2012, but other analysts such as Capital Economics have said Canada’s housing prices will collapse by as much as 25% over the next three years. CMHC’s outlook assumes that mortgage rates will remain relatively flat through 2011 and will start moderately increasing in 2012.Sales of existing homes peaked in the first quarter of 2011 and moderated in the second quarter, said CMHC, remaining close to where they were a year earlier. CMHC revised its national outlook for 2011 housing starts up from 179,500 units to 183,200 in its second quarter report. It forecasts the number will climb in 2012 to 183,900 units. In 2010, there were 189,930 starts.Overall housing starts will be down by the end of this year, according to the report, but the exceptions will be Ontario and Saskatchewan, which will both experience moderate growth. In 2012, Alberta, British Columbia and Manitoba are slated for the most growth in housing starts.Aside from mortgage rates, migration will also be a major factor in the housing market, said the report. Due to an improving economy and better employment opportunities, net migration is forecast to increase to 245,900 in 2011 from 244,644 in 2010, then increase again to 263,350 in 2012.Employment will improve 1.7% nationally in 2011 and 2012, said the CMHC citing Statistics Canada figures. The greatest gains will be in Newfoundland, up 4% in 2011 and 1.5% in 2012, and in Alberta, up 2.8% in 2011 and 2.4% in 2012. The only province to see a decrease in employment in 2011 is New Brunswick, down 1.6% after also decreasing 0.9% in 2010.
  • Howie Sito | 25 Aug 2011, 02:23 PM Agree 0
    It sounds like another "buy now or priced out forever: gimmits... If it takes 92.5%- 95.5% of household income to buy one then we already priced out. People should learn from the US, when it comes down, it will be hard.. it's just matter of time.
  • Al | 25 Aug 2011, 02:30 PM Agree 0
    Sounds like a whole lot of wishful thinking in this "article". Canada is in for a major shock when it comes to real estate.
  • Nick | 25 Aug 2011, 03:00 PM Agree 0
    Quite likely the above comments are by people out of the market. It's ridiculous to compare it with the US, it's a completely different market. I do believe prices may slide a little, but there will be no major crash like south of the border.

    Wishfull thinking....
  • Neil | 25 Aug 2011, 03:23 PM Agree 0
    Maybe CMHC and CREA should start paying attention to what others are saying....

    "Canada Heading for Recession TD Warns..."
    25 August 2011 - Which Way to Pay

    "Housing Becomes Less Affordable According to RBC..."
    23 August 2011 - Which Way to Pay
  • Howie Sito | 25 Aug 2011, 03:23 PM Agree 0
    It sounds like another "buy now or priced out forever: gimmits... If it takes 92.5%- 95.5% of household income to buy one then we already priced out. People should learn from the US, when it comes down, it will be hard.. it's just matter of time.
  • Al | 25 Aug 2011, 03:30 PM Agree 0
    Sounds like a whole lot of wishful thinking in this "article". Canada is in for a major shock when it comes to real estate.
  • Nick | 25 Aug 2011, 04:00 PM Agree 0
    Quite likely the above comments are by people out of the market. It's ridiculous to compare it with the US, it's a completely different market. I do believe prices may slide a little, but there will be no major crash like south of the border.

    Wishfull thinking....
  • Neil | 25 Aug 2011, 04:23 PM Agree 0
    Maybe CMHC and CREA should start paying attention to what others are saying....

    "Canada Heading for Recession TD Warns..."
    25 August 2011 - Which Way to Pay

    "Housing Becomes Less Affordable According to RBC..."
    23 August 2011 - Which Way to Pay
  • miro | 25 Aug 2011, 04:29 PM Agree 0
    What will happen to CMHC if 10% of properties is foreclosed?
    O!!!! look like they need things to look green and shinny :)
  • Al | 25 Aug 2011, 04:53 PM Agree 0
    Whatever helps you sleep at night Nick.
  • miro | 25 Aug 2011, 05:29 PM Agree 0
    What will happen to CMHC if 10% of properties is foreclosed?
    O!!!! look like they need things to look green and shinny :)
  • Al | 25 Aug 2011, 05:53 PM Agree 0
    Whatever helps you sleep at night Nick.
  • J | 25 Aug 2011, 08:01 PM Agree 0
    "Whatever helps you sleep at night Nick."..here here
  • J | 25 Aug 2011, 09:01 PM Agree 0
    "Whatever helps you sleep at night Nick."..here here
  • anlianA | 31 Aug 2011, 06:37 AM Agree 0
    I heard that the U.S. employees may have a little more cash to spend next year. A new study shows that U.S. companies are likely to offer moderate pay raises in 2012. While the economic climate is still struggling, earnings are up from last year and employers generally recognize the need to reward successful employees. Article source: American workers may get a larger raise in 2012
  • anlianA | 31 Aug 2011, 07:37 AM Agree 0
    I heard that the U.S. employees may have a little more cash to spend next year. A new study shows that U.S. companies are likely to offer moderate pay raises in 2012. While the economic climate is still struggling, earnings are up from last year and employers generally recognize the need to reward successful employees. Article source: American workers may get a larger raise in 2012
  • JERZ | 01 Nov 2011, 05:11 PM Agree 0
    has it ever predicted a down market?
  • JERZ | 01 Nov 2011, 06:11 PM Agree 0
    has it ever predicted a down market?
  • bad credit personal loans | 08 May 2013, 05:19 AM Agree 0
    At your local bank or credit union you can apply for a secured personal mortgage.

    The process is the same and it is very simple. t have sufficient funds.
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