Ontario Housing Market Will Remain Balanced: CMHC
Ontario housing activity will regain momentum through the course of 2014 before easing later in 2015, according to the Second Quarter 2014 CMHC Housing Market Outlook – Canada Edition released today. After declining in 2013, Ontario annual home starts will slow to 55,400 units in 2014 before stabilizing in 2015. Ontario starts will range between 50,000 and 63,200 units over the course of 2014 and 2015.
“An improving economy through 2014 and 2015 and less out-migration to western Canada will provide support to the broader Ontario housing market. As home prices continue to rise, albeit at a more modest pace, demand will shift to less expensive housing both by type and geography,” said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist. “Consequently, we remain more bullish on the less expensive resale market and less expensive higher density housing sector. By geography, cheaper bedroom communities surrounding the more expensive GTA market are also expected to outperform.”
Ontario existing home sales will gradually lead the market higher with MLS® sales growing to 201,700 units in 2015 from 193,500 units in 2014. MLS® sales will range between 181,000 to 214,000 units this year and next. Ontario home prices will grow at a slower rate over the forecast horizon.
As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. 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 informed decisions.
For more information, call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.
Ontario MLS® Sales2
Ontario Starts1 (All Areas)
1 The outlook is subject to a heightened degree of uncertainty. Although point forecasts are presented in this publication, CMHC also presents forecast ranges and risks where appropriate. The forecasts included in this document are based on information available as of April 30, 2014.
2 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).