Blogs

Blog Categories

Mortgage Market Updates and News

What to do, what to see? In Port Alberni, BC

Federal mortgage insurer reassures us, there’s no housing bubble

Posted on Jun 10, 2014 in Mortgage Market Updates and News

By Staff The Canadian Press


OTTAWA – Canada Mortgage and Housing Corp. still sees a soft landing in Canada’s housing market future, with construction slowing further and price increases leveling off in the low single-digits.

But the latest quarterly forecast sees builders curbing their enthusiasm for more speculative construction aiming to tailor starts to more to demand, particularly in the overbuilt condo market.

“Builders are expected to continue to manage their starts activity in order to ensure that demand from buyers seeking new condominium units is first channelled toward unsold completed units or unsold units that are currently under construction,” said the agency’s deputy chief economist Mathieu Laberge.

CMHC predicts the average home price will rise 3.5 per cent to $396,000 this year, and 1.6 per cent to $402,200 in 2015.

Meanwhile, housing starts are predicted to dip somewhat from the 187,923 units built last year.

The agency forecasts starts this year will range between 172,300 and 189,900 for a midpoint prediction of 181,100. The midpoint forecast for 2015 is 182,100, suggesting a flat but not falling market.

CMHC also sees Multiple Listing Service sales remaining stable, with a midpoint of sales this year at 457,900 units, virtually unchanged from 2013. Sales are expected to pick up to about 471,100 units in 2015.

A number of analysts, including international organizations, have been anticipating a slowdown in the Canadian market, which is among the most robust in the world in defying what has generally been soft economic conditions.

The forecast from the government-held agency that insures higher-risk mortgages suggests that is happening in Canada, but the correction will be soft enough not to severely impact the economy or household wealth values.


Contact

I'm looking forward to connecting. Due to being in and out of meetings both for council and business, email is typically the best way to get in touch with me. If you prefer to call, that's fine as well, it just may take me slightly longer to get back to you. Texting is also welcomed.
  • TMG - The Mortgage Group Canada Inc.
    3610 Estevan Drive, Port Alberni, BC, V9Y 5R2
  • Cell: 250.730.0239
  • Fax: 1.877.474.5346
  • Email: sharie@mortgagegrp.com
  • RE/MAX Mid-Island Realty
    4213 Princess Road, Port Alberni, BC, V9Y 5R2
  • Phone: 250.723.5666

Please feel free to use the form below to contact me.

  • Human verification question:
    What is the first name of the broker who owns this site?
Email has been sent!
Email could not be delivered. Please try again later!