Toronto Housing Market to Balance in 2010

TORONTO , Nov. 5 /CNW/ - Toronto's housing market will remain healthy next year as sales stabilize and housing starts rebound, according to Shaun Hildebrand , CMHC's Senior Market Analyst for the Greater Toronto Area. CMHC released its latest forecast for the GTA today at the annual CMHC Toronto Housing Outlook Conference.

"It is encouraging to see how resilient the housing market has been in this difficult economic environment. This year has proven that homeownership remains a top priority among households across the GTA. The strong rebound in housing market activity will continue to support the economic recovery, which will promote a healthy housing market in the years to come," said Shaun Hildebrand , CMHC's Senior Market Analyst for the GTA.

While overall demand for homeownership is expected to moderate next year, households with stable employment will continue to take advantage of improved affordability conditions compared to 2007 and 2008. Steady housing demand will result in increased housing starts next year.

    
    Other highlights of the conference include:

    -   Housing starts will rise by 26 percent in 2010 to 36,140 units, and
        will move higher over the next few years to meet the housing
        requirements of a rising population. Low-rise homes will lead the
        increase in starts next year as a result of stronger new home sales
        this year.

    -   After reaching 82,000 sales this year and surpassing the 2008 level,
        the existing home market will cool in 2010 to 78,000 sales.
        Single-detached homes will see the most activity this year, but this
        trend will begin reverting back towards multi-family dwellings in the
        second half of next year as affordability begins to erode.

    -   Price growth in the resale market will show moderation in 2010 as
        more balanced conditions develop. In comparison to the 2009 average,
        prices will grow by five per cent next year, which is in line with
        the annual average for this decade.
    

"We anticipate the gradually improving provincial economy and improved 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 will temper Ontario's housing recovery in 2010."

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

For further information: Media inquiries: Shaun Hildebrand, Senior Market Analyst, CMHC, Telephone: [phone], E-mail: [email protected]; Beth Bailey, Communications and Marketing Consultant, CMHC, Telephone: [phone], E-mail: [email protected]