Sudbury Employment Growth Bucks Provincial Trend

SUDBURY, ONTARIO--(Marketwire - May 30, 2011) - Solid employment growth this year and next will provide a strong foundation for the resale and new construction market in Greater Sudbury after two years where uncertainty dominated the economy and housing market, according to Canada Mortgage and Housing Corporation. CMHC released this information today in its Spring Housing Market Outlook report for the Sudbury Census Metropolitan Area (CMA). Reports are also available for other major metropolitan centres across the country.

Highlights of this report include:

• Sudbury's total employment will increase modestly in 2011 and again in 2012, due to a recovery in the goods-producing and services producing sector. Most job growth will be full-time in nature.

• Existing home sales in Sudbury will grow to 2,300 and 2,450 units this year and next year respectively.

• Expect healthy average MLS(R) price growth this year while in 2012, the rate of change in prices will slow as new listings growth lags demand.

• Single-detached housing starts will rise in 2011 and again in 2012 as the resale market underpins positive gains in new construction.

"A rebound in commodity price has lifted the local economy," stated Warren Philp, CMHC Northern Ontario Market Analyst. "This positive economic news creates positive conditions for housing transactions of all types both this year and next," concluded Philp.

"Consumer buying patterns, particularly in more expensive southern Ontario markets, will increasingly shift to less expensive housing over the next few years thanks to tighter mortgage market conditions. This bodes well for the apartment ownership and rental sector," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Northern Ontario housing markets are an exception as strong activity in the mining sector and relatively more affordable housing will support growing demand for low density housing," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions. For more information, visit www.cmhc.ca or call 1-800-668-2642.

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CMHC's national web-site is located at www.cmhc.ca.