CMHC's 2015 Saskatchewan Housing Outlook Conference

REGINA, SASKATCHEWAN--(Marketwired - Feb. 19, 2015) - Canada Mortgage and Housing Corporation (CMHC) economists and market analysts shared their key insights and forecasts for Saskatchewan's housing markets at today's CMHC Housing Outlook Conference. CMHC experts presented to over 200 hundred industry representatives on economic, demographic and other factors impacting the province's major housing markets.

In Saskatchewan's new home market, total housing starts are expected to decline in both 2015 and 2016. "Lower oil prices will have a dampening effect on investment and economic growth. This will contribute to slower job growth and moderating net migration which, in turn, will slow housing demand," said Lai Sing Louie, CMHC's Regional Economist for the Prairie and Territories Region.

In Regina, the inventory of complete and unabsorbed single-detached homes stood at 160 units at the end of 2014, 57 per cent higher than at the end of 2013. "Moving forward, local builders will first seek to meet new home demand from their inventory of unsold units. As a result, we expect single-detached starts to total 700 units in 2015, before edging lower to 675 in 2016," said Goodson Mwale, CMHC's Senior Market Analyst for Saskatchewan.

Rising inventory and moderating economic fundamentals in Saskatoon mean multi-family starts are forecast to decline 20 per cent to 1,560 units in 2015, after reaching a 30-year record in 2014. Without any significant reduction in inventory, a further decline to 1,540 units can be expected for 2016. Slower employment growth and lower net migration will also have a moderating effect on resale demand this year, despite historically low mortgage rates. Saskatoon's sales are forecast to move lower to 5,800 units in 2015, but will increase moderately in 2016 to 5,850 units.

Regina's MLS® sales are also forecast to decline to 3,650 transactions in 2015 although sales of existing homes in Regina will remain above historical averages. "In 2016, a modest increase to 3,675 sales is projected, supported by continued employment growth and population gains. The average MLS® price in Regina is forecast to rise less than one per cent to $316,500 in 2015, before edging up to $322,000 by 2016," said Mwale.

CMHC's annual Calgary Housing Outlook Conference helps housing market participants understand trends in the market place, identify new opportunities, and make sound business decisions. With more than 65 years of experience, consumers and the housing industry trust CMHC to deliver reliable, impartial and up-to-date housing market information.

For more information, visit www.cmhc.ca or call 1-800-668-2642.