Ontario housing activity to stabilize in 2011
Ontario housing activity tapered off in recent months and the demand will continue to slow till stabilizing in early 2011. This is according to the 2010 Third Quarter Housing Market Outlook by Canada Mortgage and Housing Corporation.
"A number of temporary factors have boosted Ontario home sales and prices from this time last year," said Ted Tsiakopoulos, CMHC's Ontario regional economist. "However, higher mortgage carrying costs, increasing supply pressures and declining first-time buyer demand will temper Ontario's housing momentum later this year and into 2011."
Other highlights of the forecast included:
- Employment market on recovery and goods sector showing signs of stability
- Ontario existing home sales will come off of peak levels; then improved affordability will boost sales later in 2011
- Ontario sales will range between 175,000 and 210,000 unit sales this year and next
- Ontario home starts expected to reach 61,525 units in 2010; and will likely range between 47,000 to 66,000 units in 2011
- Demand for single detached homes will weaken in more expensive Ontario markets
- Rising mortgage carrying costs will increase demand for apartment ownership and rental accommodation