Ontario Housing Activity Expected To Stay Elevated

The Canada Mortgage and Housing Corporation’s Ontario Housing Market Outlook says that housing activity in Ontario is expected to remain elevated before easing up next year.

Housing starts in Ontario are now expected to be higher by almost 2,000 units in 2016, with another 213,000 to 231,500 units total in 2017.

Prices in Ontario are also expected to continue to grow, however at a slower rate overall despite strong short-term growth.

The average selling price for a home in Ontario will be between $505,500 and $516,100 this year, and between $517,100 and $535,400 next year.

“Despite an improving Ontario economy, housing activity is expected to ease over the forecast period as the cost of owning a home continues to increase,” said the Regional Economist (Ontario) for the Canada Mortgage and Housing Corporation, Ted Tsaikopoulos. “However, homes in southwestern and southern Ontario markets bordering the GTA tend to be more affordable, thus we expect a growing share of activity in those centres as we do for higher density housing which includes less expensive rental accommodation.

Canada Mortgage and Housing Corporation Releases Housing Starts And Sales Outlook for 2015

The Canada Mortgage and Housing Corporation says that housing activity in Ontario will experience a soft landing and continue to be supported by demographic fundamentals and the economy through 2014 into 2015.

“Recent trends have shown an increase in housing starts, which is broadly supported by demographic fundamentals,” said the Chief Economist for the Canada Mortgage and Housing Corporation. “However our latest forecast calls for starts to edge lower as builders are expected to reduce inventories instead of focusing on new construction.”

In 2014, the housing starts across Canada are expected to be between 179,600 and 189,900 units, while in 2015 the housing starts are expected to range between 163,000 and 203,000 units.

Sales across Canada are expected to be between 455,800 and 502,900, while sales in 2014 are expected to be between 450,800 and 482,700.