SASKATOON – New housing starts rose during January in Saskatoon, lead by an increase in multi-family units.
According to figures released on Monday by Canada Mortgage and Housing Corporation (CMHC), 308 new multi-family units were started in Saskatoon’s CMA last month compared to 56 a year earlier.
Single detached starts fell to 68 from 114 in January.
“The trend in total housing starts had been relatively flat since September 2013, but rose in January as builders initiated more rental and condominium apartments,” said CMHC’s Goodson Mwale, the senior market analyst for Saskatchewan.
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News of the increase comes days after a report from CMHC forecast a decline in housing starts for 2014 and 2015 in Saskatoon.
According to CMHC’s first quarter 2014 housing market outlook, housing starts will decrease to 2,900 units this year and 2,850 in 2015.
Construction started on 2,980 units in 2013, down from 3,753 the previous year.
“Economic growth is projected in all three prairie provinces, however elevated supply levels relative to demand in some markets will moderate new residential construction,” said Lai Sing Louie, CMHC’s regional economist for the prairie and territories region.
In 2014 and 2015, multiple listing service (MLS) sales will continue to rise. Economic and employment growth will support housing demand as will new migrants.
Saskatoon resale transactions are expected to total 5,700 this year and 5,775 in 2015. There were 5,543 transactions reported in 2013.
Balanced market conditions are projected over the forecast period which will support price growth. However, new listings are expected to increase which will help moderate price increases.
Last year, the average resale price in Saskatoon was $332,058 and is projected to rise to $340,600 in 2014 and $348,600 the following year.
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