In its newly released third-quarter 2009 Housing Market Outlook, the Canadian Mortgage and Housing Corporation (CMHC) predicts Ontario housing starts will begin to rebound in the second half of 2009, with a slight rise through 2010.
The CMHC forecasts housing starts to reach 48,675 units by the end of the year, and 50,000 by the end of 2010. The province saw 75,076 starts in 2007.
The factors spurring this anticipated growth include "a gradually improving provincial economy, improved financial market conditions and low mortgage rates," according to the report.
In Thunder Bay, the CMHC estimates starts will rise from 167 in 2008 to 175 in 2009, and 210 in 2010. Average sale prices are also expected to rise, reaching $149,750 in 2009 and $155,500 in 2010.
In Sudbury, however, both starts and sale prices are expected to drop across the next two years. With 543 starts in Sudbury through 2008, the CMHC predicts 375 starts by the end of 2009 and 365 starts in 2010. Average sale prices are also forecast to sink from $211,614 in 2008 to $197,000 in 2009, and $188,000 in 2010.
Across Canada, housing starts are expected to reach 141,900 in 2009, and 150,300 in 2010.
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