CMHC Housing Market Outlook – 4th Quarter 2009

Date: Sunday, November 1st, 2009

Housing Starts Up for 2010

 Housing StartsResales
2009:141,900441,300
2010:164,900445,150

Housing starts: After a slow start in 2009, housing starts will become stronger by the end of 2009 and average 141,900 units. In 2010, starts will increase to approximately 164,900 units.

Resales: Sales of existing homes through the Multiple Listing Service® (MLS®) have become more robust since the start of 2009. The strong pace of resales reflects, in part, activity that was delayed in the previous two quarters of 2009 and is likely not to be sustained. MLS® resales will be about 441,300 units for 2009, up from 433,990 units in 2008. As far as 2010 is concerned, there will be approximately 445,150 units sold.

Resale prices: After a few years of strong gains, the average MLS® price moderated in 2008 to $303,607. Recently, however, average prices have recovered. The average MLS® price is expected to increase to $312,950 in 2009 and to $324,500 in 2010.

Provincial Spotlight

Ontario: New home construction in Ontario will move lower to 47,400 units in 2009 while 2010 will see a
strong improvement to 56,500 units. Multiple-family starts will decrease in 2009 to 26,500 units before reaching 32,900 units in 2010.

Saskatchewan: Housing starts in Saskatchewan will moderate in 2009 to 3,600 units. However, a relatively strong labour market will continue to attract migrants to the province. Therefore, as the economy strengthens in 2010, housing starts will rebound to 4,350 units.

Lawrence Kobescak

Lawrence Kobescak

Lawrence Kobescak, the creator behind OntarioMortgageSuperstore.com is a real estate sales representative, mortgage agent and real estate investor. OntarioMortgageSuperstore.com has reached over 240,000 Canadians since 2009. Lawrence has been quoted in the Globe & Mail and MortgageBrokerNews.ca.

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