Canadian Housing Market to Improve in 2009 and into 2010 – CMHC

Things are looking up for the housing market as starts are expected to make a comeback in the second half of 2009 and into 2010, according to Canada Mortgage and Housing Corporation (CMHC).

CMHC’s Third Quarter Housing Market Outlook predicts that housing starts for 2009 will reach 141,900 for that year and will continue to increase into 2010, at 150,300, showing great promise for Canada’s economic future.

“Economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year,” says Bob Dugan, chief economist for CMHC. “In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen.”

Hamilton, Ottawa, Kitchener and Thunder Bay are the tightest resale home markets in Ontario and as a result of this, they are expected to see a large spur in new home construction later this year.

With buyers and builders shaking off leftover anxiety about the economy and a strong national rebound for resale homes a likely thing to come, many builders are expected to heighten the number of homes they’ll start construction on in the fall.

Improving this activity on the resale market and producing lower inventory levels in both the new and existing home markets are expected to aid in this rebound, according to CMHC.

Existing home sales, as measured by the Multiple Listing Service (MLS), have rebounded strongly since January and are expected to reach 420,700 units in 2009. This spur in the housing market will remain close to that level at 419,400 units in 2010.