Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2010 08:15 ET

London's Housing Market Picking Up in 2010

LONDON, ONTARIO--(Marketwire - May 19, 2010) - The housing market in the London Census Metropolitan Area (CMA) is expected to cool off in mid 2010 after a strong rebound early this year, according to the latest forecast in the London Housing Market Outlook released today by Canada Mortgage and Housing Corporation (CMHC). Reports are also available for other major metropolitan areas across the country.

Highlights of the London Spring Housing Market Outlook report include:

  • Both the resale and new construction market will show improvement in 2010. Starts will total 2,370 while MLS® sales will hit 8,700. This strength will come at the cost of future activity resulting in a volume slowdown in 2011 for both sectors in the London CMA.
  • A balanced resale market will support modest price growth in 2010 and 2011.
  • Employment growth will be steady at 1.5 per cent through 2010 to 2011, but the unemployment rate will remain high.

"With higher mortgage rates in sight, many homebuyers decided to enter homeownership sooner rather later," said David Lan, CMHC's London Market Analyst. "This will reduce future demand which means both new home construction and resale activities will drop in the second half of the year and 2011."

Trends in the London CMA housing market generally mirror expectations for the rest of the province. "Higher mortgage carrying costs, increasing supply pressures and declining first time buyer demand will temper Ontario housing activity later this year and into 2011," said Ted Tsiakopoulos, CMHC's Ontario regional economist "This transition in housing activity should be orderly thanks to improving job markets, historically low interest rates and further gains in household incomes," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes - homes that will continue to create vibrant and healthy communities and cities across the country. For more information, visit www.cmhc.ca or call 1 800 668-2642.

Contact Information

  • London:
    Canada Mortgage and Housing Corporation
    David Lan
    (519) 873-2426
    dlan@cmhc.ca
    or
    En francais:
    Canada Mortgage and Housing Corporation
    David Lan
    (519) 873-2426
    dlan@schl.ca
    or
    Ontario:
    Canada Mortgage and Housing Corporation
    Ted Tsiakopoulos
    (416) 218-3407
    ttsiakop@cmhc.ca
    or
    Canada:
    Canada Mortgage and Housing Corporation
    Charles Sauriol
    (613) 748-2799 or mobile: (613) 816-5978
    csauriol@cmhc.ca
    www.cmhc.ca