According to it’s first quarter 2012 Housing Market Outlook released Monday, CMHC made it clear that the Canadian housing market is not currently overvalued and that there is little evidence of a steep correction occuring in the near future, although there may be a significant downturn in both Vancouver and Toronto.
The Canadian Mortgage and Housing Corporation said it anticiates housing starts to decline slightly in 2012 from last year’s levels but sales of existing houses to pick up slightly. The agency expects Canada’s overall housing market to remain “steady” for 2012 and 2013 due to a reletively high level of activity.
bq.“With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” said Mathieu Laberge, Deputy Chief Economist for CMHC in a press release.
The report forecasts that the average MLS price will be $368,900 for 2012 and $379,000 for 2013. The moderate increases in the average MLS price, says CMHC, are consistent with the balanced market conditions that occurred in 2011, and that are expected to continue in 2012 and 2013.
The full report is available for free download here.