Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

August 31, 2010 10:30 ET

Ontario Housing Activity Will Stabilize in 2011

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2010) - Ontario housing activity has cooled in recent months and demand will moderate further before stabilizing early in 2011 according to the 2010 Third Quarter CMHC Housing Market Outlook - Canada Edition released today.

Highlights of the Ontario forecast include:
  • Job market is on a recovery path and goods sector shows signs of stability

  • Ontario existing home sales will moderate from peak levels but will stabilize by the early part of 2011. Improved affordability will boost sales later in 2011

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

  • Ontario home prices moderate in the second half of 2010 and then stabilize later this year. Recovering demand will boost prices through 2011

  • Ontario home starts will strengthen from 2009 levels reaching 61,525 units in 2010 before moderating in 2011 but owing to economic uncertainty will range between 47,000 and 66,000 units.
  • Demand for single detached homes will weaken in pricier Ontario markets
  • Rising mortgage carrying costs will boost demand for apartment ownership and rental accommodation.

"A number of temporary factors have boosted Ontario home sales and prices from this time last year. However, higher mortgage carrying costs, increasing supply pressures and declining first time buyer demand will temper Ontario's housing momentum 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.

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

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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