Wednesday, 20 November 2013

Toronto Housing Market and Sales Expected to Continue Balance out into 2014

Toronto's housing market will remain stable next year, according to Ed Heese, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Toronto. CMHC presented its latest forecast for the Toronto Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Conference.


At this year's conference, entitled 'Profiling Toronto's Echo Boomer', CMHC market analysts explained how the Echo Boomer demographic will influence homebuying trends in Toronto and provided an in-depth housing market forecast for 2014.


"Housing markets in Toronto next year will look quite similar to what we're seeing this year. Existing home sales will be up modestly while housing starts will ease," said Ed Heese. "Rental vacancies will remain relatively low, but the rate of increase in rents will slow.
Highlights from today's conference include:
  • Total housing starts will ease in 2014 with activity shifting to semi-detached and row homes from single-detached homes and apartments.
  • Gradually rising mortgage rates will keep existing home sales growth modest.
  • Rising home values will keep more people in rental housing, but additional condo rentals will keep rental supply in balance with demand.
  • After lagging in 2013, income growth will match broadly based employment growth.
"Housing activity in Ontario will slow in 2013 then stabilize by 2014, thanks in large part to an improving Ontario economy, lower inventories of unsold homes and less out-migration to other provinces. Tight resale market conditions for single detached homes, active repeat buyers and improving income growth will allow demand for lower density homes to hold up better for most of 2014," said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist.



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