Canada Mortgage and Housing Corporation predicts a 27 per cent increase this year in new home activity in Thunder Bay.
"Home buying activity brought forward ahead of mortgage rate increases is strengthening both the new and existing home markets in the first half of 2010," said Warren Philp, CMHC's Northern Ontario Market Analyst.
"Home sales activity will ease off in the remainder of the year, while the supply of homes, motivated by higher prices, will increase in 2011."
In CMHC's Spring Housing Market Outlook, based on first half activity, the report estimates existing home sales will reach 1550 units with a rising supply and moderate sales tempering price listing growth.
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