Ontario housing activity has stabilized in recent months and housing demand will show a modest recovery through the latter part of 2011 and into 2012, according to the Canada Mortgage and Housing Corporation (CMHC).
Highlights of the Ontario forecast include:
• Ontario economy lags activity in rest of Canada during 2011/12 after leading in 2010.
• Current trends suggest existing home sales will be hard pressed to match last spring’s activity in 2011 but should grow modestly into 2012
• Owing to economic uncertainty, Ontario sales will range between 165,000 and 217,000 transactions this year and next
• Ontario home prices will grow closer to inflation this year and next as markets remain balanced
• Ontario home starts will weaken from 2010 levels reaching 56,200 units in 2011 and 59,500 units in 2012
• Owing to economic uncertainty, starts will range between 49,000 to 68,000 units this year and next
• Demand for apartment ownership and rental accommodation will remain strong
“Fourth quarter activity in 2010 confirms that housing markets have stabilized across the province,” said Ted Tsiakopoulos, CMHC’s Ontario Regional Economist.
“Momentum in housing activity should slow in the next year from the volatile pace in recent years as moderate economic growth, fewer first time buyers and rising mortgage carrying costs temper increases in sales and prices,” added Tsiakopoulos.