It's not often that a forecast calling for a 7 per cent decline in housing starts is seen in a positive light.
But that's what can happen when the current year is on pace to hit a 25-year high.
According to Canada Mortgage and Housing Corp. (CMHC), housing starts in Manitoba in 2012 are expected to top 7,500, including single- and multi-family units, representing a 23 per cent increase from 2011.
Next year, however, starts are expected to level off to about 7,000, said Dianne Himbeault, CMHC's senior market analyst for Winnipeg.
A growing population is the biggest driver of housing demand, she said.
"We've been seeing several consecutive years of net migration as a province, around 10,000 people a year. The population grows at about 1.5 per cent [annually] and with that kind of growth there needs to be additional housing," she said.
One market that has carved out a bit of a niche in this environment in Winnipeg recently is townhouses, said Himbeault, particularly for first-time buyers and people upsizing out of condos.
The resale housing market saw prices rise 5.5 per cent last year in Winnipeg, down from a lengthy stretch of years where prices regularly rose by double digits. Himbeault said that has encouraged some people to upgrade to new homes.
from Western Investor December 2012
