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Oakville, Mississauga & GTA Real Estate Market News

May 19, 2009

    

Housing Activity Will Moderate in 2009, Improve in 2010

OTTAWA, May 19, 2009 — Housing starts are expected to decline to 141,900 for 2009, but increase to 150,300 for 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook, Canada Edition* report.

 

“The decline in housing starts in 2009 can be attributed to several factors, including the current economic climate, increased competition from the existing home market, and the impact of strong house price growth between 2002 and 2007” said Bob Dugan, Chief Economist for CMHC. “However, housing market activity will begin to strengthen in 2010 as the Canadian economy recovers, bringing housing starts more in line with demographic fundamentals over the forecast period”.

 

Existing home sales, as measured by the Multiple Listing Service (MLS®)1, are expected to decline to 357,800 units in 2009 from 433,990 in 2008, but increase to 386,100 units in 2010. The average MLS® price is also expected to decrease to $283,100 in 2009 and to stabilize in 2010.

 

As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

 

* The forecasts included in the Housing Market Outlook are based on information available as of April 30, 2009. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

1 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces.

 

National Housing Outlook

 

 

Key Housing Market Indicators

 

2008
Actual

2009
Forecasts

2010
Forecasts

Total housing starts (units)

211,056

141,900

150,300

Forecast Ranges

 

125,000 – 160,000

130,000 – 180,000

Total single-detached houses

93,202

62,400

68,000

Forecast Ranges

 

53,800 – 71,000

60,500 – 81,200

Total multiple housing units

117,854

79,500

82,300

Forecast Ranges

 

71,200 – 89,000

69,500 – 98,800

Total MLS® sales1

433,990

357,800

386,100

Forecast Ranges

 

320,000 – 380,000

350,000 – 430,000

Average MLS® selling price ($)

303,607

283,100

283,100

Forecast Ranges

 

$270,000 – $295,000

$270,000 – $300,000

Provincial Housing Outlook

Total Housing Starts

 

2008
Actual

2009
Forecasts

2010
Forecasts

Newfoundland and Labrador

3,261

2,675

2,975

Prince Edward Island

712

575

625

Nova Scotia

3,982

3,100

3,425

New Brunswick

4,274

3,475

3,650

Quebec

47,901

40,000

41,350

Ontario

75,076

51,325

52,300

Manitoba

5,537

3,950

4,250

Saskatchewan

6,828

3,400

3,850

Alberta

29,164

13,700

16,200

British Columbia

34,321

19,725

21,700

Source: CMHC Housing Market Outlook, Canada Edition, Second Quarter 2009. Totals may not add due to rounding.

 

Information on this release:

 

Kristen Scheel
CMHC
Media Relations
Tel.: 613-748-2799
kscheel@cmhc-schl.gc.ca

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