ONTARIO HOUSING MARKETS WILL STABILIZE IN 2010
Toronto - Stable economic conditions across the province will help stabilize housing demand in 2010 according to the 2009 Fourth Quarter CMHC Housing Market Outlook - Canada Edition released today.
Highlights of the Ontario forecast include:
Ontario`s domestic economy will gradually recover in 2010 but a high Canadian dollar & cautious US consumer spending will temper the province`s export sector recovery
Ontario resale volumes will stabilize reaching 175,250 units in 2010 but owing to economic uncertainty will range between 165,000 and 181,000 unit sales next year
Resale volumes will be down from the peak in 2007 but will be in line with volumes earlier this decade
After experiencing buyers market conditions early in 2009, balanced to sellers market conditions will be sustained through 2010 prices will rise by 4.0 per cent and 3.9 per cent this year and next respectively.
After declining in 2009, new home starts will edge up and reach 56,5001 units but owing to economic uncertainty will range between 45,400 and 65,500 units in 2010.
High levels of affordability will support demand for detached housing in immediate term but shift to more inexpensive multi-family housing will occur as affordability erodes in late 2010
Economic growth will gain momentum by 2011 allowing Ontario home starts to move up closer to levels consistent with demographic demand
“A gradually improving provincial economy and stable credit and financial market conditions will help stabilize housing activity next year” said Ted Tsiakopoulos, CMHC’s Ontario regional economist. “However, less pent-up demand and cautious consumer spending resulting from modest employment and personal income gains are factors that will temper Ontario`s housing recovery in 2010,” added Tsiakopoulos.