Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 21, 2010 16:39 ET

Thunder Bay New Home Activity Will Grow in 2010

THUNDER BAY, ONTARIO--(Marketwire - May 21, 2010) - New home activity in Thunder Bay will increase by 27 per cent in 2010, predicts Canada Mortgage and Housing Corporation. CMHC released this information today in its Spring Housing Market Outlook report for Thunder Bay. Reports are also available for other major metropolitan areas across the country.

Highlights of the report include:

  • On the strength of first half activity, existing home sales will grow and reach 1550 units this year. Moderating sales and rising listings will temper the growth in prices.

  • Home starts will rise 27 per cent this year only to slow by 10.5 per cent in 2011 as affordability declines. The upturn in the resale market will contribute to an increase in home starts this year as builders see demand returning to the market.

  • Modest population growth supported by improved migration, an improving job market and low mortgage rates will provide support for homeownership demand through 2010.

"Home buying activity brought forward ahead of mortgage rate increases is strengthening both the new and existing home markets in the first half of 2010. Home sales activity will ease off in the remainder of the year, while the supply of homes, motivated by higher prices, will increase in 2011," commented Warren Philp, CMHC Northern Ontario Market Analyst.

Trends in the Thunder Bay CMA housing market generally mirror expectations for the rest of the province.

"Higher mortgage carrying costs, increasing supply pressures and declining first time buyer demand will temper Ontario housing activity 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.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of 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 vital decisions.

Aussi disponible en francais.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

Contact Information

  • Thunder Bay:
    Canada Mortgage and Housing Corporation
    Warren Philp
    (807) 343-2016
    wphilp@cmhc.ca
    or
    En francais :
    SCHL
    Sandra Perez Torres
    (613) 748-5120
    sperezto@schl.ca
    or
    Ontario:
    Canada Mortgage and Housing Corporation
    Ted Tsiakopoulos
    (416) 218-3407
    ttsiakop@cmhc.ca
    or
    Canada:
    Canada Mortgage and Housing Corporation
    Charles Sauriol
    (613) 748-2799
    csauriol@cmhc.ca
    www.cmhc.ca