Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 18, 2010 08:15 ET

Housing Market to Stabilize

TORONTO, ONTARIO--(Marketwire - Nov. 18, 2010) - Single-detached homes will make up the majority of all new construction in the Barrie Census Metropolitan Area (CMA) in 2011 but overall starts will be lower according to the Barrie Housing Market Outlook, Fall 2010 edition released today by Canada Mortgage and Housing Corporation (CMHC). Reports are also available for other major metropolitan areas across the country.

Highlights of the Barrie Housing Market Outlook report include:

  • The downward trend in existing home sales and new listings throughout 2010 will reverse by mid-2011, but the subsequent growth will be gradual;
  • The resale market will cool, leading to sharply slower price growth in 2011;
  • With most housing demand satisfied in the resale market, starts will be much lower in late 2010 and early 2011 before beginning a gradual recovery; and,
  • Employment will continue to expand modestly in 2011.

"Many homebuyers purchased early in 2010 to avoid anticipated mortgage rate increases. This depleted the pool of potential buyers which explains the current slowdown in housing demand," said Edgard Navarrete, CMHC's Barrie Market Analyst. "This effect will dissipate in 2011. Consequently, with continued job growth, activity in both the new and resale market will pick up gradually in 2011," added Navarrete.

"While Ontario home sales and prices have moderated since early this year, Ontario housing activity is now more in line with economic conditions. This ensures more stability in housing markets in the months ahead," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "This transition in housing activity has been orderly thanks to improving job markets and historically low interest rates."

Canada Mortgage and Housing Corporation (CMHC) has been Canada's national housing agency for over 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, and making vibrant and sustainable communities and cities a reality across the country. For more information, visit www.cmhc.ca or call 1 800 668-2642.

Contact Information

  • Barrie:
    Canada Mortgage and Housing Corporation
    Edgard Navarrete, Market Analyst
    218-218-3329
    enavarre@cmhc.ca
    or
    Ontario:
    Canada Mortgage and Housing Corporation
    Ted Tsiakopoulos, Regional Economist for Ontario
    416-218-3407
    ttsiakop@cmhc.ca
    www.cmhc.ca