London Housing Market to Remain Steady in 2012

LONDON, ONTARIO--(Marketwire - Nov. 1, 2011) - Housing demand in the London Census Metropolitan Area (CMA) will remain steady in 2012 despite slower economic growth and uncertainty in global financial markets, according to Margot Stevenson, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for London. CMHC presented its latest forecast for the London CMA today at the annual CMHC Housing Outlook Seminar.

"Move-up buyers will be the main drivers of housing demand in London next year," said Margot Stevenson, CMHC's London Senior Market Analyst. "However, first-time home buyers will have plenty of options available due to a balanced resale market."

Highlights from today's seminar include:

• Housing prices will increase slightly while sales decline.
• Higher density starts will increase marginally.
• Homes from downsizing baby boomers will be in demand.

"Housing demand in Ontario will continue shifting to less expensive, higher density housing in 2012 due to slower economic growth and a diminishing appetite for big ticket spending. This will support demand for resale homes, apartment ownership and rental accommodation," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "However, demand for more expensive single detached housing will hold up better in Northern Ontario and in urban markets bordering the GTA," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. 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 vital decisions.

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