House prices to continue rising: CMHC

The Canada Mortgage and Housing Corporation is predicting that Saskatchewan house prices will continue to rise in 2008, and 2009.


The CMHC says the average price of a re-sale home in Saskatchewan will increase by 26 percent this year, to $220,000, and an additional 8 percent next year, to an average selling price of $238,000.


The CMHC is predicting a smaller price increase of 18 percent for re-sale houses in the City of Saskatoon this year, bringing the average selling price in Saskatoon to $275,000, and it is predicting the average selling price in Saskatoon will reach $297,500 in 2009.


The CMHC is also predicting that rising housing prices in Saskatchewan will mean fewer people will be attracted to Saskatchewan because of traditionally affordable housing prices here, and that could result in fewer new housing starts in the province this year.


The CMHC is forecasting 5,600 new housing starts in Saskatchewan this year, a decrease of 400 housing starts from 2007, and it says that could decrease again in 2009, when 5,300 new housing starts are predicted.


Last month, saskhouses.com reported record high asking prices for private home sales in Saskatoon, and the Saskatoon Real Estate Association also reported record high selling prices for homes sold through MLS.