According to Canada Mortgage and Housing Corporation’s (CMHC) first quarter 2013 Housing Market Outlook, Prairie Highlights, housing starts are expected to moderate this year before seeing increases in 2014.
Starts in the Prairie provinces (Alberta, Saskatchewan, Manitoba) are projected to hit 47,200 this year before increasing to 47, 800 in 2014. Residential construction in the prairie region increased from 38,818 to 50,606 between 2011 and 2012, a 30 per cent increase.
“In 2013, housing starts are projected to moderate to 47,200 units as net migration to the Prairies slows and supply levels remain elevated,” stated a CMHC release. “By 2014, improved global economic conditions will increase exports and investment, contributing to improved employment opportunities and a rising level of migrants.”
In Alberta, the average resale price increased 2.8 per cent in 2012 to $363,208 with balanced conditions projected to persist over the next two years with the average MLS® price expected to increase to $380,700 in 2014.
In Manitoba the provincial average price increased five per cent between 2011 and 2012 to $246,318 while Saskatchewan’s average price increased by 5.7 per cent to $274,268 in the same time period.