CMHC: Toronto Housing Market to Hold Steady in 2012

TORONTO, ONTARIO--(Marketwire - Nov. 3, 2011) - Toronto's housing market will see few changes next year as sales flatten out, prices stay near current levels and condominium apartment construction remains strong, according to Shaun Hildebrand, Canada Mortgage and Housing Corporation's Senior Market Analyst for the Greater Toronto Area. CMHC released its latest forecast for the GTA today at the annual CMHC Toronto Housing Outlook Conference.

"The market will feel somewhat slower than previous periods of high activity as buyers practice more restraint in light of slowing economic fundamentals," said Shaun Hildebrand. "Low interest rates will help keep a decent sales pace, but expect resistance to price increases as more supply enters the market," added Hildebrand.

While the headline numbers won't change much in 2012, several subplots within the diverse GTA housing market will be worth paying attention to.

Highlights of the conference include:

• Price growth for condos will wind down as a large number of units under construction reach completion.
  
  
• High levels of condo construction will help alleviate some pressures on vacancy rates as rental demand remains strong.
  
  
• Ownership affordability will remain in check as first-time buyers gravitate towards relatively less expensive pockets of the GTA.
  
  
• The downsizing trend will gain momentum in the coming years as more baby boomers enter their retirement years.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. 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 vital decisions.

For more information, visit www.cmhc.ca or call 1-800-668-2642.