Housing starts in the Prairie region are projected to decrease from 55,067 in 2014 to 49,600 in 2015 and 48,000 in 2016, the latest Housing Market Outlook by Canada Mortgage and Housing Corporation (CMHC) stated.
“Lower oil prices will have a dampening effect on investment and economic growth, particularly in Alberta and to a lesser extent Saskatchewan. This will contribute to slower employment growth and net migration, in turn slowing housing demand,” said Lai Sing Louie, CMHC’s Regional Economist.
“With key drivers less supportive of housing demand and supply levels elevated in some markets, housing starts in the Prairie region are expected to decline in 2015 and 2016.”
Housing starts in Alberta will decrease from 40,590 units in 2014 to 36,000 in 2015 and even further to 34,500 in 2016. In Saskatchewan, CMHC said figures will fall from 8,257 in 2014 to 7,300 in 2015 and 7,200 in 2016.
Meanwhile, Manitoba’s starts will be near the 2014 production figures and remain stable with 6,300 units in 2015 and 2016.
CMHC also said economic uncertainty and dropping oil prices will impact employment and temper demand, despite the massive number of migrants in the region. Migrants are expected to support sales in the resale market.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
More market watch: