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No spring in the housing market

The Canadian Association of Accredited Mortgage Professionals (CAAMP) says the federal government’s restrictions on mortgage borrowing will result in a decline in new home building.

This will cause job losses and a drop in housing-related economic activity by 2015. In its annual spring report, Change in the Canadian Mortgage Market, based on data from an April 2013 survey, CAAMP projects that housing starts will drop by 25 to 30 percent by mid-2015, resulting in 150,000 fewer jobs.

While the survey shows Canadians with mortgages are managing debt responsibly, CAAMP president and CEO Jim Murphy says, “What is cause for concern is that the housing market, an important engine of growth for the Canadian economy, is slowing to such an extent that without any change, it could take another five years to recover.” ◊