Fretful home owners and anxious industry observers need not fear, says the Canada Mortgage and Housing Corporation (CMHC). According to the Canadian Observer, the yearly edition of its report on industry trends and developments, the Canada housing market will experience a stable year in 2014.
In a news item from the Wall Street Journal, the CMC gave the following reasons for this projected housing stability. First, the usual reasons for a fluctuating market are not present, such as an excessive number of homes that are for sale and the depressed prices that tend to accompany this trend. The current sales-to-new-listings ratio at 40 to 55 percent still speaks of a balanced market.
Second, the forecast that an upswing in condominium construction did not occur. Toronto saw a number of 955 finished but unsold condos, and Vancouver had 1,622 of the same. Both numbers are far from the record figures of condominium units built in both cities in the mid-2000’s, which is 1,800 in Toronto and 3,317 in Vancouver.
Finally, non-payment of mortgages has lessened. Defaults as of June this year were 0.31 percent compared to 0.33 percent in June 2012.
