17 February 2011

In 2012 a modest increase is predicted.
 
2.    Employment.
The jobs lost during the economic downturn have already been recovered. The employment growth in 2011 and 2012 will support the housing market.
 
3.    Income.

In 2010 the growth in incomes improved due to economic recovery and the labour market situation. In 2011-2012 the income growth is expected to grow at a modest pace.
 
4.    Net Migration.
The main thing about net migration is that an improving job market conditions will attract immigrants who will push the net migration up in 2011 and 2012.
 
5.    Natural Population Increase.

The main reason for slowing of growth in the natural population is the low birth rate. It can reduce demand for additional housing inventory.
 
6.    Resale Market
The sales in the existing home market have increased. .In 2011-2012 the market conditions are expected to be in balanced market territory for most.
 
7.    Vacancy Rates.

Rising competition from condo market and low rental construction will be at least partly offset by strong rental demand. The demand will be provoked by the high immigration level. In the end, the vacancy rates will remain relatively stable.


CMHC: real estate prices
will follow the inflation level

 

According
to CMHC the house prices will follow the inflation level during the next 2
years. Moreover, in 2011 a moderate housing market activity is expected.

 

CMHC’s
first quarter market outlook predicted the existing home sales will vary from 398,500
to 485,500 units in 2011 (the average: 441,500 units). In 2012, MLS sales will increase
and vary from 406,300 to 519,700 units (the average: 462,900 units).

 

“Over
the next two years the employment level will continue to grow due to modest
economic growth. Given the mortgage rates will remain low, it will support the
demand for new homes,” – said Bob Dugan, chief economist for CMHC.

 

In
addition to this information, CMHC named 7 main factors, affecting the
residential construction:

 

1.     
Mortgage Rates.

According to recent
forecasts, mortgage rates can remain unchanged in 2011. In 2012 a modest
increase is predicted.

 

2.     
Employment.

The jobs lost during
the economic downturn have already been recovered. The employment growth in
2011 and 2012 will support the housing market.

 

3.     
Income.

In 2010 the growth in
incomes improved due to economic recovery and the labour market situation. In
2011-2012 the income growth is expected to grow at a modest pace.

 

4.     
Net Migration.

The main thing about
net migration is that an improving job market conditions will attract
immigrants who will push the net migration up in 2011 and 2012.

 

5.     
Natural Population
Increase.

The main reason for
slowing of growth in the natural population is the low birth rate. It can reduce
demand for additional housing inventory.

 

6.     
Resale Market

The sales in the
existing home market have increased. .In 2011-2012 the market conditions are
expected to be in balanced market territory for most.

 

7.     
Vacancy Rates.

Rising competition from condo market and low
rental construction will be at least partly offset by strong rental
demand. The demand will be provoked by the high immigration level. In the end,
the vacancy rates will remain relatively stable.

 

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