CMHC says housing starts to decline:
Canada Mortgage and Housing Corp., says the housing boom will slow this year, predicting starts will ease to 213,425 units after reaching 227,395 units in 2006.
A 6% declineA further 6% decline. Yes, that's right folks, 12% in two years
In its second-quarter Housing Market Outlook, the corporation predicts that residential construction will continue to decline in 2008 to 200,175 units. That still means seven consecutive years in which housing starts exceed 200,000 units.
The corporation says higher mortgage carrying costs and the erosion of demand that built up in the 1990s will mean lower starts.
It says sales of existing homes will remain strong, forecasting sales of 487,500 this year.
Prices for existing homes are forecast to grow almost 10 per cent this year, mainly because of strong price pressures in the West. (emphasis mine).
Immigration numbers for 2005-2006 were 254,000. That's not 254,000 families, that's individuals. So we built 1 house for every 1.1 immigrant. Sounds pretty sustainable to me! Not.