17 November 2010
In her recent speech at CMHC’s annual conference she also noted that there shouldn’t be a decrease in housing values. The agency expects about a two per cent increase to follow the rate of inflation.
According to these forecasts, new homes will remain stable, with a slight increase in starts this year and a 3.4% drop next year. In addition to it, multiple-family units will continue to prevail – the townhomes will lead the way.
The CMHC’s base case scenario says posted mortgage rates will stay almost unchanged in the second half of 2010 and in the first half of 2011. Nevertheless, the rates may increase in case of a faster economy recovering. And, of course, if it the recovery pace turns out to be even slower, then the rates will hardly increase.