Paul Martin's Business Update - February 7th

Paul Martin's Business Update - February 7th

Expansion of the province’s housing inventory appears to have peaked. Actually it happened more than a year ago.

A new forecast on the outlook for the residential construction market from CMHC, the Canada Mortgage and Housing Corporation, says 2013 saw a smaller number of new homes built in the province than 2012. And the downward trend is likely to continue for the next two years.

The peak in 2012 saw just under 10,000 new units built. That declined to 8,300 last year. The corporation is expecting 7,700 this year and 7,500 in 2015.

This is further evidence that the residential construction industry – which has long struggled to meet the demand of 20,000 new residents moving to the province each year – has finally caught up. Yet, the report says, the cost of the average house – this is a resale price – is going to continue to rise despite the closer balance between supply and demand.

The average Saskatchewan home price will be $295,000 this year and cross over the $300,000 mark next year, about $100,000 lower than the average next door in Alberta.

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