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Regional Housing Performance
ONTARIO HOUSING CONSTRUCTION TO SLOW in 2009
Toronto - Balanced resale markets across the province of Ontario will temper new home demand, according to the 2008 Third Quarter CMHC Housing Market Outlook - Canada Edition released August 15, 2008.
Highlights of the Ontario forecast include:
US and Ontario economic growth will remain sluggish for remainder of 2008 followed by a very gradual economic recovery in 2009
Sluggish US consumer spending on durable goods will weigh most on provincial export sector and economy.
Ontario resale volumes adjusted downward in Q3, moderating to 189,150 units and 178,000 units this year and next respectively.
Ontario existing home price growth adjusted down, rising by 2.8 per cent this year and 2.3 per cent in 2009.
Windsor, Thunder Bay and St. Catharine's-Niagara will under-perform given their business ties to a slowing US economy while Hamilton, Kitchener, Ottawa, Greater Sudbury housing markets will hold up better.
Ontario new home construction will slow to 65,000 units next year after a move up to 76,000 units in 2008
Apartments will capture a higher share of new construction activity ensuring above average high rise construction activity in Toronto, Ottawa and Barrie.
“Slowing sales and increasing resale home inventories will pull the Ontario housing market into balance and dampen the pace of construction activity next year,” said Ted Tsiakopoulos, CMHC's Ontario regional economist. “However, demand for modestly priced housing will hold up better as declining employment opportunities in higher paying employment sectors encourages demand for both apartment ownership and rental accommodation,” added Tsiakopoulos.
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