Saskatchewan conditions characteristic of balanced market: CMHC

The Canada Mortgage and Housing Corporation(CMHC) released it Canadian Housing Market Outlook for 2010 today predicting residential resale activity across Canada will grow by just less than five percent to 486,700 while new housing starts rise by roughly as much to 175,150. According to CMHC the average price of a resale home in Canada reached $342,231 in the fourth quarter of 2009 as sales rose ahead of new listings but Canada’s national housing agency expects price increases to lose steam as “new listings catch up to sales and more balanced conditions return.”

In Saskatchewan, a more balanced market will be driven by continued population growth, CMHC predicts. They expect the province’s numbers to grow by ten thousand in 2010 and 2011, a combined result of positive inter-provincial and international migration. CMHC sees single-family housing starts in the province reaching 3,150, up from 2,829 in 2009, and MLS sales growing to 11,500 from 10,856 last year. “Considerable choice” will see price growth of resale homes moderate as they gain just 2.3% to reach $239,000.

In Saskatoon, single-family home starts will rebound from 1,101 to 1,200 this year following a 7.6% decline in the New Housing Price Indexin 2009, the report predicts. MLS sales numbers will increase to 4,100 from 3,834 and the average resale price of a Saskatoon home will see a marginal increase from $278,895 last year to $285,000 through 2010.

Read the full report here.

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