Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2010 15:00 ET

Ontario Housing Demand Will Moderate in 2011

TORONTO, ONTARIO--(Marketwire - May 19, 2010) - The robust pace in housing demand will moderate later this year and into 2011 but demand will be supported by firming employment conditions in Ontario according to the 2010 Second Quarter CMHC Housing Market Outlook - Canada Edition released today.

Highlights of the Ontario forecast include:

  • Ontario among the leaders driving Canadian economic recovery in 2010/11

  • Job markets on a recovery path and goods sector shows signs of stability

  • Quarterly Ontario resale volumes will moderate from record levels but owing to economic uncertainty will range between 181,500 and 224,000 unit sales this year and next

  • Higher home prices will prompt more listings and balanced market conditions by 2011 – resulting in a flattening price trend

  • Ontario home starts will strengthen from 2009 levels reaching 63,200 units this year and 58,800 units in 2011

  • Single detached home construction will lead starts early in 2010

  • Rising mortgage carrying costs will shift demand from expensive to more inexpensive housing later this year and into next

  • Ontario residential construction activity moves higher beyond 2011 – trending closer to demographic demand levels

"A number of fundamental but temporary factors have boosted Ontario home sales and prices in recent months. 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 real interest rates and further gains in household incomes," added Tsiakopoulos. 

To view, "ONTARIO MLS® SALES2," please visit the following link:  http://media3.marketwire.com/docs/ONMLS.jpg.

To view, "ONTARIO STARTS1 (ALL AREAS)," please visit the following link: http://media3.marketwire.com/docs/ONMLSb.jpg.

  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 April 16, 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.

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