Housing starts to drop this fall and next year in Calgary

“Weakening employment will be at the heart of a general softening of housing market demand in 2016 and 2017, especially in the resale market”, concluded Philp.

The 2015 housing market in Thunder Bay is slightly down in terms of new home starts, according to Canada Mortgage and Housing Corporation’s (CMHC) Fall Housing Market Outlook report for Thunder Bay. “This will hold back growth in housing starts in both of these provinces in 2015 and 2016 before improving economic conditions provide a few gains in 2017”.

By 2017, the CMHC forecasts MLS sales will fall to 37,400 across the region.

“In 2015, increased housing market activity in provinces like Ontario and British Columbia – provinces that have benefitted from declining energy prices, a lower Canadian dollar and continued low mortgage rates – offset slowdowns in oil-producing provinces like Alberta”, said Bob Dugan, CMHC’s chief economist, in a statement.

“We expect, however, that this counterbalancing effect will decrease over time”.

National housing prices are expected to plateau and favour moderately priced homes.

The average rent for a two-bedroom apartment is expected to increase by 0.2 per cent this year to $1,325 followed by a 0.8 per cent increase in 2016 to $1,335 and 1.1 per cent hike in 2017 to $1,350.

The CMHC says 2015 and 2016 will see 4,000 starts per year.

The MLS sales and prices for Metro Vancouver is based on data from the Real Estate Board of Greater Vancouver, which does not include Surrey, Langley, North Delta and White Rock.