THUNDER BAY – Housing across Northern Ontario is in for an interesting year. That is the conclusion from the Canada Mortgage and Housing Corporation (CMHC). Mining and affordable housing are expected to help boost the market, while a shortage of real estate listings are likely to impact prices.
After a year dominated by above average single-detached starts in 2010, starts of semis, rows and apartment housing will capture attention in Thunder Bay this year according to Canada Mortgage and Housing Corporation. CMHC released this information today in its Spring Housing Market Outlook report for Thunder Bay.
Highlights of the report include:
-Home starts will rise 22 per cent this year on the strength of improved semi-detached, row and apartment starts and above average single-detached home starts.
-After an active 2010, existing MLS® home sales are slowing and will fall five per cent this year and will recover only modestly next year.
-Listings shortages will continue to put upward pressure on average MLS® prices and sustain seller’s market conditions.
-The rate of population growth will be supported by stronger net inmigration but tempered by the effects of an aging population.
“Listings shortages will continue in the resale market impacting sales and price,” observes Warren Philp, CMHC Northern Ontario Market Analyst. “Home starts will top 2010 on the strength of developers cultivating interest in options for high density ownership housing.”.
“Consumer buying patterns, particularly in more expensive southern Ontario markets, will increasingly shift to less expensive housing over the next few years thanks to tighter mortgage market conditions. This bodes well for the apartment ownership and rental sector,” said Ted Tsiakopoulos, CMHC’s Ontario Regional Economist. “Northern Ontario housing markets are an exception as strong activity in the mining sector and relatively more affordable housing will support growing demand for low density housing”.