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Canadian Home Sales Will Fall Over Next 2 Years, CMHCForecasts ‘
**The housing market will see “moderation” in thecoming years, the government-run mortgage insurer says. **geand Housing Corp. projects housing starts and sales are both expected todecline in 2019 and 2020.
OTTAWA — Canada Mortgage and Housing Corp.says the country’s real estate market is expected to moderate over the next twoyears as the growth in housing prices
is expected to slow to more in line witheconomic fundamentals.
In its 2018 housing market outlook releasedtoday, the national housing agency projects housing starts and sales are bothexpected to decline in 2019 and 2020.
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It predicts housing starts for single andmulti-unit starts will fall to between 193,700 and 204,500 in 2019, while salesare anticipated to be between 478,400 and 497,400 units.
Prices are anticipated to range between$501,400 and $521,600.
CMHC says it expects economic indicators likeincome and employment to continue to help support demand for housing starts,but these fundamentals
are anticipated to slow down to a moresustainable pace.
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Rising mortgage rates are also expected toaffect housing demand and the resale market.
By 2020, CMHC anticipates demand willcontinue to shift towards relatively less expensive housing options likeapartment condominiums versus higher-end single-detached homes.
"Over our forecast horizon, housingstarts are projected to decline from elevated levels recorded recently.
Resales should also moderate while houseprices are expected to reach levels that are more in line with thefundamentals,"
Bob Dugan, chief economist at the CMHC, saidin a statement.