Saskatchewan Housing Forecast for 2009

The Canada Mortgage and Housing Corporation is predicting that house prices in Saskatchewan will continue to stabilize in 2009. 

CMHC said Thursday the average price of a Saskatchewan home will rise two per cent next year, after jumping 28 per cent this year and a record 32 per cent in 2007.

"The majority of 2008's gain will be attributed to strength in the first half of the year," said CMHC's fourth-quarter housing market outlook. "Since then, a sharp rebound in active listings and lower demand has stalled price growth."

The huge increase in housing prices in the past two years will likely deter some people from moving to the province, reducing in-migration, said the report. Nonetheless, CMHC predicts Saskatchewan will be among the provincial economic growth leaders in the next five years.

Gregory Klump, chief economist for the Canadian Real Estate Association (CREA), says housing price declines are likely in early 2009, although they will be "modest."

CMHC also forecasts a drop in housing starts for 2009. CMHC expects 6,500 homes to be built in Saskatchewan this year, falling off to 4,900 next year. The 2009 total will be made up of 3,300 single units and 1,600 multiple units. Every province will see a decline in starts, said CMHC.

You can read more on the CMHC 2009 Forecast for Saskatchewan in this Saskatoon Star Phoenix Report.