Province
TORONTO — Vancouver will take the No. 1 spot in Canada‘s housing market next year, while Toronto and Montreal will watch housing starts dwindle, according to a national forecast released yesterday.
Construction began on about 19,400 homes in Vancouver last year. The Clayton Housing Report forecasts that number will fall to 19,100 this year, but rebound to 21,100 in 2006 as employment growth strengthens. Vancouver is posting a 12.7-per-cent increase in housing prices so far this year.
Calgary will also see a construction lift, going from 14,100 starts this year to 14,800 next, as a shortage of existing houses for sale pushes more buyers to consider buying new.
But all of the other major markets have passed their prime.
“Of note is the sharp decline in Toronto which is linked to the emerging land shortages,” it added. Last year, 42,100 homes were started, and that should decrease slightly to 41,200 this year. In 2006, Clayton predicts starts will drop to 34,700.
In the first nine months of this year, Toronto saw housing prices rise 6.9 per cent, the report said.
Montreal is experiencing a steady decline in starts, moving from 28,700 last year, to 24,100 this year and 19,300 next. Prices have appreciated 7.7 per cent.
Edmonton, Regina, Ottawa and Halifax will also see starts fall next year, while Winnipeg should hold steady for the third year in a row at 2,500, the report said.
© The Vancouver Province 2005
