CMHC predicts housing market will remain stable over the next two years

TORONTO, Ont. – The Canada Mortgage and Housing Corporation predicts the Canadian housing market will remain fairly stable this year and next.

The agency is predicting little change from 2011 in prices, new home construction and sales of existing homes.

The CMHC says that it is because the economy appears set to expand at only a moderate pace over the next two years and mortgage rates will remain low.

Low mortgage rates and high demand have driven housing prices sharply higher in large urban centres such as Toronto, leading many experts to warn that a housing bubble could burst when rates finally do rise.

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