Cooling Signs for the housing market?



By: ORIT ALON  
Published: June 8th 2010
in Economics » Local

Houses for sale.

According to the Canadian Mortgage and Housing Corporation (CMHC), the annual housing rate started at 189,100 units in May, down from 201,800 units in April.

 

Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre, noted that the decrease is mutual to both the singles and the multiples segments, and is consistent with the forecast that housing units in 2010 will reach 182,000.

 

The report shows signs of slowing for this market. Most economists expect house prices will fall next year, as interest rates rise and demand ebbs.

 

Canada’s housing market has been blooming in recent months as buyers rushed into the market to beat the introduction of a new sales tax in Ontario and British Columbia, ahead of expected rate hikes, which began last week.

 

The seasonally adjusted annual rate of urban starts decreased by 9.5 percent to 165,200 units in May. Urban multiple starts decreased by 5.6 per cent to 92,800 units, while single urban starts decreased by 14.1 percent to 72,400 units.

 

May’s seasonally adjusted annual rate of urban starts decreased 21.8 percent in the Prairie region, 13 percent in Quebec, 12.9 percent in British Columbia, and 2.7 percent in Ontario.

 

Urban starts in Atlantic Canada have increased, however, by 23.3 percent.



Related articles: (housing rates, CMHC, annual rates)
Share with friends Print this page Read later Recommend 1 times