Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

February 17, 2011 08:15 ET

More Stability in Ontario Housing Markets

TORONTO, ONTARIO--(Marketwire - Feb. 17, 2011) - Ontario housing activity has stabilized in recent months and housing demand will show a modest recovery through the latter part of 2011 and into 2012, according to the 2011 First Quarter CMHC Housing Market Outlook - Canada Edition released today.

Highlights of the Ontario forecast include:

  • Ontario economy lags activity in rest of Canada during 2011/12 after leading in 2010.

  • Current trends suggest existing home sales will be hard pressed to match last spring's activity in 2011 but should grow modestly into 2012.

  • Owing to economic uncertainty, Ontario sales will range between 165,000 and 217,000 transactions this year and next.

  • Ontario home prices will grow closer to inflation this year and next as markets remain balanced.

  • Ontario home starts will weaken from 2010 levels reaching 56,200 units in 2011 and 59,500 units in 2012.

  • Owing to economic uncertainty, starts will range between 49,000 to 68,000 units this year and next.

  • Demand for apartment ownership and rental accommodation will remain strong.

"Fourth quarter activity in 2010 confirms that housing markets have stabilized across the province," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Momentum in housing activity should slow in the next year from the volatile pace in recent years as moderate economic growth, fewer first time buyers and rising mortgage carrying costs temper increases in sales and prices," added Tsiakopoulos.

To view the graphs associated with this release, please visit the following link: http://media3.marketwire.com/docs/cmhc_graphs_e.pdf.

1. The outlook is subject to a heightened degree of uncertainty. Although point forecasts are presented in this publication, CMHC also presents forecast ranges and risks where appropriate. The forecasts included in this document are based on information available as of January 17, 2011.

2. The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).[1]

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

The Housing Market Outlook, Ontario Highlights report is available on the CMHC Web site: http://www.cmhc-schl.gc.ca.

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