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It comes as no surprise that the Canadian Mortgage and Housing Corporation (CMHC) predicts a continued slow-down in the real estate and building markets in Canada for the second quarter 2009. Remember that recession thing that’s wreaking havoc across the globe?
Well, the CMHC recently released its outlook on the second quarter of 2009 (April-June) and, if you’re in the mood for positive thinking, things are forecasted to turn around … in 2010. Housing starts in Q2 of 2009 are expected to be 141,500 nationwide, while they’ll see positive growth by this time next year, to the tune of an additional 8,800 housing starts (150,300). But, if you’re in a pessimistic mood and wonder how far Canada’s mighty real estate market has fallen, you’ll note 2008’s second quarter housing starts were 217,600 (and 227,800 in 2007’s Q2!), which makes 2010’s forecasted rebound a little less exciting.

But remember, a ray of hope is sometimes all that’s needed in these doom-and-gloom times of new housing starts across Canada, so try to take the positive out of this one. The decline in housing starts in 2009 can be directly tied to the economic downturn. The fact they’re being compared to near record numbers of 2007 and 2008 certainly doesn’t help with appearances either. But one look at the employment rates across Canada will explain why fewer people are putting shovels into the ground in every province in 2009. Although more housing starts are expected in 2010, CMHC forecasts more people will be looking for work in every province next year as well.
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