Toronto housing market expected to cool next year
March 2, 2010
Tony Wong
BUSINESS REPORTER
Sales of new and existing homes in the Toronto area should fall significantly next year, as the market continues to slow, according to a forecast released today.
The Canada Mortgage and Housing Corporation said existing home sales will drop to 83,000 units, falling by 9.3 per cent over 2010.
The new homes market will be even harder hit, falling by 10.1 per cent over 2010 figures according to the federal housing agency in their first outlook for 2011.
New mortgage rule changes, higher interest rates and the introduction of the harmonized sales tax in Ontario will all have an impact on sales, say analysts.
Still, 2010 is expected to be an extremely healthy year with sales surpassing last year. New home starts and existing home sales are expected to be 29 per cent and 2.5 per cent higher respectively over 2009.
The CMHC also expects sale prices to be up significantly this year by 8.5 per cent over last year. However, price appreciation and sales are expected to decline as the market slows moving forward.