Real Estate — June 25, 2013
London's Housing Market to Moderate in 2013
TORONTO, ONTARIO--(Marketwired - June 25, 2013) - Canada Mortgage and Housing Corporation (CMHC) released its 2013 Spring Housing Market Outlook report today for the London Census Metropolitan Area (CMA). Existing homes sales and starts will be slightly lower in 2013 as compared to 2012 but will recover in 2014.
"The higher-end market and more affordable options such as row homes and homes in St. Thomas will do well through 2013," said Alexander Bonnyman, Senior Market Analyst for London. "Employment growth will come from export-related manufacturing jobs and the service sector which will entice younger Londoners to stay in the City supporting the resale market. Gains to higher-wage forms of employment seen in 2012 will support the higher end of the resale and new home markets," added Bonnyman.
MLS® sales in the London CMA through 2013 will moderate in relation to the 2012 result. The rate at which listings come to market will also slow as some households sit on the side-lines until they gain more confidence in the local economy. The result will be a resale market in balance and the average MLS® price which will grow at a pace in line with the Ontario average. Total starts are also expected to slow from the 2012 pace largely as fewer apartments are started while people move into the new units that are coming to completion. Single-detached starts will also slow although row homes will see a small increase to the number of starts. Row homes fit a number of criteria that will continue to increase their popularity going forward. Average price growth for new single-detached homes will be stronger than that of the average resale price as the higher-end market continues to be strong for new homes in London.
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
For more information, visit www.cmhc.ca or call 1-800-668-2642.
CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.