Ontario Housing Activity Will Remain Elevated in 2016

Multimedia content available

TORONTO, May 18, 2016 — Ontario housing activity is expected to maintain its momentum in 2016 before easing in 2017, according to the Second Quarter 2016 Ontario Housing Market Outlook – Regional Highlights Report released today by Canada Mortgage and Housing Corporation (CMHC).

 
Transcript

Foreground: Ted Tsiakopoulos, Regional Economist, Ontario

Background: windows

Ted Tsiakopoulos: “Despite an upward revision to the economic and housing outlook in Ontario, housing activity will ease by 2017 largely due to the rising cost of housing.  However, markets in south-western Ontario and markets bordering the more expensive GTA are more affordable and thus will gain a larger share of housing activity moving forward. In addition, we remain quite bullish on the higher density segment of the housing market which includes townhomes, apartment ownership and apartment rental accommodation.”

 

Report Highlights:

  • Ontario housing starts have been revised higher and are expected to range between 71,300 and 73,500 units in 2016 before slowing and ranging between 63,200 and 66,500 in 2017. 
  • Existing homes, being less expensive, will register stronger sales activity ranging between 224,700 and 233,300 units in 2016 and ranging between 213,000 and 231,500 units in 2017.
  • Ontario home prices are expected to grow at a slower rate over the forecast period but post strong growth in the short run thanks to seller’s market conditions.
  • Ontario average home prices will range between $505,500 and $516,100 in 2016 and $517,100 to $535,400 in 2017.

The presence of uncertainty creates some risks to the Ontario economic and housing outlook. This can result in a wider range of possible outcomes over the forecast horizon. Stronger growth in the US economy, interest rates remaining low longer and strong demand for single family homes could support much stronger housing activity. Alternatively, weaker job growth, growing imbalances in the housing market and rising inventories in both the resale and new home market could result in much weaker activity. Please refer to discussion on outer ranges in “Risks to Housing Outlook” section of Ontario HMO Regional Highlights Report for more details.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

Follow us on Twitter, YouTube, LinkedIn and Facebook.

“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. 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.”

— Ted Tsiakopoulos, Regional Economist (Ontario), Canada Mortgage and Housing Corporation

Information on This Release:

Media Contact:
Angelina Ritacco
416-218-3320
Cell: 647-210-7420
aritacco@cmhc.ca

CMHC Media Content Available for this News Release:

  • Video Clip — English (9,818 KB)
  • Ted Tsiakopoulos Headshot (130 KB)

Download this Media Package (ZIP - 9.57 MB)

Canada

Share...


Print(opens in a new window)