Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 19, 2010 08:32 ET

Toronto Housing Market Will Slow

TORONTO, ONTARIO--(Marketwire - May 19, 2010) - The Canada Mortgage and Housing Corporation (CMHC) released its Spring Housing Market Outlook report for the Greater Toronto Area (GTA) today. 

Highlights of the report include:

  • MLS® sales in the GTA will hit a record high 101,000 this year. Average prices for 2010 will increase to $444,000. Both sales and price growth will begin to show significant moderation in the second half of this year and early next year.
  • New home sales will jump to 42,000 in 2010 thanks to a 50 percent increase in high rise sales. Housing starts will rise by 34 percent this year to reach 36,400 units on strong single-detached construction.
  • The unemployment rate in Toronto will fall slightly to an average of nine percent this year. Employment gains will push the unemployment rate down further next year, providing support for homeownership demand.

"2010 will prove to be a highlight year for resale activity but will also represent a turning point for the market as we head into next year. Lowered purchasing intentions from first-time buyers will weigh on sales at a time when existing owners will be more interested in selling their homes. The result will be much slower price growth than the market is used to seeing," explains Shaun Hildebrand, CMHC's Senior Market Analyst for the GTA.

"The good news is that the local economy is creating jobs and increasing incomes quicker than previously anticipated. This will help with affordability conditions as interest rates move higher, thereby supporting sales and housing construction in the GTA," adds Hildebrand.

To view the graph associated with this release, click the following link: http://media3.marketwire.com/docs/cmhc0519toronto.pdf.

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

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