According to the Canada Mortgage and Housing Corporation (CMHC) Market Housing Outlook, Ontario housing activity will moderate slightly in 2012, reflecting the province’s slower economic growth and job creation. However, it is expected grow into 2013 thanks to the record low interest rates.
Ontario home starts were well above the demographic demand in 2011 growing to 67, 821. They are predicted to moderate to more balanced 63,450 units in 2012 and increase to 64,500 in 2013. MLS® sales will range from 171,250 and 217,550 transactions in 2012 and 2013.
On a year-over-year comparison basis, Ontario housing market finished strongly in February, 2012 with 15,049 residential units sold, up from 13,505 in February of 2011. The average price was 390,901, an increase of 8.6 per cent from February, 2011.
Nationally, the average home price rose 2 per cent on a year-over-year basis in February. The Canadian Real Estate Association predicts average home prices to fall by 1.1 per cent in 2012, to an average of $359,100, before rebounding 0.9 per cent in 2013. See CREA’s press release here.