Ontario housing market to be sustained until end of 2015, then will slow, says CMHC


The momentum in the Ontario housing market will be sustained through most of 2015 before slowing later next year and into 2016, according to the Fourth Quarter 2014 CMHC Housing Market Outlook – Canada Edition released recently. After declining in 2014, Ontario annual home starts will grow to 63,000 units in 2015 and will range between 57,500 and 67,900 units before slowing to 60,400 units in 2016.

“An improving economy will be more supportive of the Ontario housing market in 2015. However, as mortgage carrying costs continue to grow, due largely to rising home prices, demand will increasingly shift to more affordable housing by 2016,” said Ted Tsiakopoulos, CMHC`s Ontario regional economist. “Neighbouring resale markets surrounding the GTA, higher density dwellings and rental over ownership tenure will benefit most from the continued shift in buying patterns.”

Ontario existing home sales will gradually lead the market higher with MLS sales growing to 210,500 units in 2015 before slowing to 202,700 units in 2016. MLS sales will range between 199,500 to 221,300 units in 2015. Ontario home prices will grow at a slower rate over the forecast horizon.



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