SASKATOON – Housing starts in the Saskatoon census metropolitan area (CMA) have had a weak start in 2015, according to preliminary numbers released by the Canada Mortgage and Housing Corporation (CMHC). The report released Monday says the local market will not pick up anytime soon either.
Saskatoon CMA starts were 155 units for January compared to 202 in December 2014. Broken down, there were 59 single detached homes and 96 multiple family units started last month.
In January 2014, there were 376 starts in the Bridge City area.
MORE: Saskatoon housing starts up in 2014
On Feb. 6, CMHC released a market outlook report which projects housing starts in the Prairies to slow down this year and the next.
“With key drivers less supportive of housing demand and supply levels elevated in some markets, housing starts in the Prairie region are expected to decline in 2015 and 2016,” said CMHC Regional Economist Lai Sing Louie.
“Lower oil prices will have a dampening effect on investment and economic growth, particularly in Alberta and to a lesser extent Saskatchewan. This will contribute to slower employment growth and net migration, in turn slowing housing demand.”
Total housing starts in Saskatoon’s CMA are forecast to fall from 3,531 in 2014 to 3,085 in 2015 and 3,015 in 2016.
The average resale price in the Saskatoon area rose to $341,899 in 2014. CMHC is projecting this growth will ease but still estimates prices to increase to $346,000 in 2015 and $350,000 in 2016.
In Saskatchewan, housing starts are expected to drop by around 1,000 units annually in 2016 compared to last year. Total urban starts so far this year are 301 compared to 568 in 2014.
CMHC’s preliminary housing starts for Canada in January were at 11,622, up slightly from 10,989 units in January 2014.
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