* Housing starts to slow in 2012, 2013
* Sales of existing home to moderate in 2012, rebound in
* Price gains to slow to 0.2 pct in 2012, 1.5 pct in 2013
By Andrea Hopkins
TORONTO, Nov 5 New homebuilding in Canada is
expected to continue to moderate in the last quarter of 2012 and
into 2013, while existing home sales should hold steady and
prices climb at or slightly below inflation, the Canada Mortgage
and Housing Corp said on Monday.
"A weaker outlook for global economic conditions and the
waning of the effect of pre-sales from late 2010 and early 2011,
which contributed to support multi-family starts this year, will
bring moderation in housing starts next year," Mathieu Laberge,
Deputy Chief Economist for CMHC, said in the federal agency's
"Nevertheless, employment growth and net migration will help
support housing starts activity going forward," he said.
Canada's housing market, which roared higher in 2011 and the
first half of 2012, has begun to moderate after the government
tightened rules on mortgage lending in a bid to cool the market
and prevent homebuyers from taking on too much debt.
In its quarterly outlook, the CMHC said housing starts will
be in the range of 210,800 to 216,600 units in 2012, with a
point forecast of 213,700. Homebuilding should slow further in
2013, with starts in the range of 177,300 and 209,900, with a
point forecast of 193,600, the agency said.
Existing home sales will slow to a range of 449,200 to
465,600 units in 2012, with a point forecast of 457,400 units.
In 2013, sales are expected to move up in the range of 433,300
to 489,700 units, with a point forecast of 461,500 units.
Price gains are expected to slow in 2012 but regain some
strength in 2013. CMHC's point forecast for the average price
calls for a 0.2 percent gain to C$365,100 ($366,400) in 2012 and
a 1.5 percent gain to C$370,500 for 2013.