GTA Housing Market Will Keep Steady in 2012

TORONTO, ONTARIO--(Marketwire - Nov. 4, 2011) - Canada Mortgage and Housing Corporation (CMHC) released its Fall Housing Market Outlook report for the Greater Toronto Area (GTA) today. New home construction is forecast to remain elevated next year at 35,000 units on the strength of condominium apartment construction.

"The current trend is forecast to remain the same for the housing market next year. Low interest rates balanced with more moderate economic growth is expected to limit gains in housing activity," explained Shaun Hildebrand, CMHC's Senior Market Analyst for the GTA. "For the first time in a while, the market will be entering into a balanced state where price growth remains slow and new home construction moderates," added Hildebrand.

MLS^® sales for the GTA are expected to remain close to previous years with a total of 88,500 transactions. Price levels should hold but will remain fairly flat with annual growth of one per cent. New home sales are forecast to decrease to 33,500 units in 2012.

Housing demand will continue shifting to less expensive, higher density housing in 2012 due to slower economic growth. This will support demand for resale homes, apartment ownership and rental accommodation. However, demand for single-detached housing will hold up better in urban markets bordering the GTA.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.

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