Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 15, 2010 08:15 ET

Ontario Housing Activity Will Stabilize

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2010) - Ontario housing activity has stabilized in recent months and housing demand will show a modest recovery through the latter part of 2011, according to the 2010 Fourth Quarter CMHC Housing Market Outlook - Canada Edition released today.

Highlights of the Ontario forecast include:

  • Ontario leads economic recovery in 2010 but lags rest of Canada in 2011.

  • Current trends suggest sales will stabilize by year end and post modest gains through 2011

  • Owing to economic uncertainty, Ontario sales will range between 175,000 and 210,000 transactions this year and next

  • Ontario home prices will stabilize later this year. Recovering demand will boost prices through 2011

  • Ontario home starts will strengthen from 2009 levels reaching 59,900 units in 2010. Home starts will moderate in 2011 but show modest recovery later next year.

  • Owing to economic uncertainty, starts will range between 47,000 to 65,000 units this year and next.

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

"While Ontario home sales and prices have moderated since early this year, Ontario housing activity is now better 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," added Tsiakopoulos.

To view the "ONTARIO MLS® SALES 2" graph, please visit the following link:

http://media3.marketwire.com/docs/onmlssales.pdf

ONTARIO STARTS1 (ALL AREAS)

http://media3.marketwire.com/docs/onstarts.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 October 8, 2010.

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: www.cmhc-schl.gc.ca.

Contact Information

  • Canada Mortgage and Housing Corporation
    Ted Tsiakopoulos
    (416) 218 3407
    ttsiakop@cmhc.ca
    or
    Canada Mortgage and Housing Corporation
    Charles Sauriol
    (613) 748-2799
    csauriol@cmhc.ca