Canada Housing Agency Lowers 2014 Starts Forecast

Canada’s housing agency pared its forecast for work on new dwellings next year.

The pace of housing starts will be 186,600 units in 2014, down from an earlier estimate of 188,900 units, Canada Mortgage & Housing Corp. said today from Ottawa. The pace of starts this year was forecast to be 182,800 units, little changed from a June 25 estimate of 182,900.

“As fundamentals, including employment, economic growth and net migration, are expected to gain momentum later in 2013 and in 2014, housing starts will trend slightly higher next year,” according to the CMHC report.

Bank of Canada Governor Stephen Poloz has said the country must shift from growth driven by record consumer debt and homebuilding to business investment and exports. Housing continues to show strength, leading CMHC to say Aug. 6 it would ration mortgage-backed security guarantees after demand approached its C$85 billion ($82 billion) cap.

CMHC forecast the number of home resales would rise to 467,600 units next year from 448,900 this year. The outlook for the average home resale price was raised to C$374,800 this year and C$382,800 next year, from June figures of C$369,700 and C$377,300.

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