CMHC warns of slowdown

The Toronto real estate market will continue to do well in 2010 beforeretrench­ing significantly next year, says a CMHC forecast.

The Toronto real estate market will continue to do well in 2010 before retrench­ing significantly next year, says a CMHC forecast.

Sales of new homes in the Toronto area are expected to rise 30 per cent compared with 2009, while existing home sales should be up 2.5 per cent, according to a report released yesterday by the Canada Mortgage and Housing Corp.

“The rate of appreciation will slow down as you have higher mortgage carrying costs, less pent up demand and increasing supply pressures,” said Ted Tsiakopoulos, Ontario regional economist for the CMHC.

A robust first half means the CMHC expects sale prices to be up significantly by 8.5 per cent over last year. The average price of a home is expected to be $430,000, a new record.

Despite the fall in sales, the CMHC still expects existing home prices in the Toronto market to rise by 2.5 per cent to $439,755.

 
 
Latest From ...
Most Popular From ...