Thunder Bay Resale Price Growth to Continue in 2012

THUNDER BAY, ONTARIO--(Marketwire - Nov. 4, 2011) - Canada Mortgage and Housing Corporation (CMHC) released today its Fall Housing Market Outlook report for Thunder Bay. Housing starts will rise 80 per cent in 2011 relative to 2010 on the strength of improved semi-detached, row and apartment starts and above average single-detached home starts. Starts are forecast to decrease by four per cent in 2012.

"Despite strong price appreciation, listings shortages will continue in the resale market as homeowners defer listing their homes," noted Warren Philp, CMHC Northern Ontario Market Analyst. "Due to lack of availability in the resale market, move-up buyers will take action, increasing the demand for single-detached starts next year," added Philp.

Existing MLS® home sales are slowing as employment weakens in 2011. Resale transactions are forecast to fall nine per cent in 2011 and are expected to grow modestly in 2012 as Thunder Bay employment begins to recover. Listings shortages will lead to average MLS® price increases of 7.1 per cent in 2011 and another six per cent in 2012 sustaining seller's market conditions.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. 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.

CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.

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