Ontario home sales peaked in the second quarter of 2012 and are expected to stabilize before recovering by second half of 2013 and into 2014. Modest job growth and tighter mortgage market conditions will dampen demand among first time buyers in immediate term. Softer price growth combined with an improving job market will support housing demand by 2014. Owing to economic uncertainty, Ontario sales will range between 177,500 to 213,900 transactions this year and next.
Ontario resale prices grew above the general rate of inflation in 2012. A balanced market and fewer home sales at higher price ranges suggest less upward pressure on Ontario home prices in 2013. Improving job and income growth and rising sales will support stronger price growth by 2014.
For More Information on CMHC Housing Outlook use this link to access the full report; http://www.cmhc-schl.gc.ca/odpub/esub/65434/65434_2013_Q01.pdf?fr=1361756636234