The Canadian housing industry expects a few market numbers this week, after the Canadian Real Estate Association warned last week that the residential real estate sector will slow down this year and next.
On Tuesday, Canada Mortgage and Housing Corp. is set to release May housing-start figures. On Thursday, Statistics Canada releases its April new-home price index. Next week, CREA will divulge figures on May existing-homes sales. Economists anticipate further gains in both housing-start and new-home price figures. It appears the new home-market maintains its growth longer, even when the resale market slows.
"In the coming months, with the Canadian economic recovery expected to gain further traction, and still low though rising mortgage rates remaining supportive to housing demand, we expect the recovery in Canadian residential construction to remain largely intact," Millan Mulraine, TD Securities senior strategist, wrote in a research note Friday.
Housing starts are set to come in at an annualized rate of 205,000 for May. It spent several months estimated at around 200,000, which was thought to be unsustainable because Canada's typical household-creation rate is 175,000 a year.