According to the latest CMHC Housing Market Outlook, Canadian economic and demographic fundamentals continue to be supportive of new home building. However, in order to manage inventory levels, builders are expected to adjust building activity.

“Builders are expected to continue to manage their starts activity in order to ensure that demand from buyers seeking new condominium units is first channeled toward unsold completed units or unsold units that are currently under construction,” says Mathieu Laberge, deputy chief economist for CMHC.

By the end of 2014, annual housing starts are expected to each between 172,300 and 189,900 units. Heading into 2015, housing starts are expected to range from 160,600 to 203,600 units.

Average MLS prices are forecast to be between $386,400 and $405,600 in 2014, and between $388,200 and $416,200 in 2015. These figures represent a 3.5 per cent gain and 1.6 per cent gain, respectively.