Edmonton Housing Starts Peaking in 2012
Here is something I received from the REALTORS® Association of Edmonton. A very interesting report stating Edmonton is doing great according to CMHC
Housing starts are on the rise and not expected to level out until 2013 according to the Canada Mortgage and Housing Corporation(CMHC). Their Fall 2012 Edmonton Housing Outlook forecasts an increase of housing starts in the Edmonton Census Metropolitan Area to 12,000 units in 2012. That is up 28 percent from the 9,332 starts in 2011.
The CMHC cites low mortgage rates (around 3% or so), job growth, and increased migrations as the reasons behind the growth. At the same time, the lower supply in the resale market and declining rental vacancies have increased the demand of new builds.
2012 single detached starts are expected to be 12 percent higher than in 2011 with a dip of two percent in 2013. Multiple family starts are expected to end up a whopping 48 percent higher in 2012 with over 6,400 starts compared to the 4,315 in 2011. The CMHC predict multiple family starts will drop 17 percent in 2013. (please note, those are starts, not increase of prices)
Although new home starts (by the way, I can also show you new built homes) are predicted to cool off, modest increases in home sales and pricing are still expected through 2013. The slight increase in mortgage rates coupled with employment growth predicted for 2013 means the market should remain fertile. To the end of August, average employment in Edmonton increased 3.2 per cent, representing the addition of over 20,000 jobs.
I also have the Fall 2012 edition of CMHC's Housing Market Outlook - Edmonton is now available and can be accessed by clicking this link.
Do you also agree with CMHC that Edmonton's housing is doing much better then most of the country?