Is it the Right Time to Cash in Your Equity?
In its 2018 housing market outlook, the Canada Mortgage and Housing Corporation (CMHC) has forecasted that housing starts and sales are both expected to decline in 2019 and 2020.
It predicts housing starts for single and multi-unit starts will fall to between 193,700 and 204,500 in 2019. Sales are anticipated to be between 478,400 and 497,400 units with prices anticipated to range between $501,400 and $521,600.
CMHC expects economic indicators like income and employment to continue supporting demand for housing starts, but these fundamentals are anticipated to slow down to a more sustainable pace.
Rising mortgage rates are also expected to affect housing demand and the resale market.
By 2020, CMHC anticipates demand will continue to shift towards relatively less expensive housing options like apartment condominiums versus higher-end, single-detached homes.
“Over our forecast horizon, housing starts are projected to decline from elevated levels recorded recently. Resales should also moderate while house prices are expected to reach levels that are more in line with the fundamentals,” Bob Dugan, chief economist at the CMHC, said in a statement.
Source | The Huffington Post
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