Gradual Improvement in the Second Half of 2011

LONDON, ONTARIO--(Marketwire - May 30, 2011) - The housing market in the London Census Metropolitan Area (CMA) is expected to remain cool in 2011 before a gradual improvement in the second half of the year, according to the latest forecast in the London Housing Market Outlook released today by Canada Mortgage and Housing Corporation (CMHC). Reports are also available for other major metropolitan areas across the country.

Highlights of the London Spring Housing Market Outlook report include:

• Existing home sales will decline in the first of half of 2011 and then gradually increase through the latter half of the year and into 2012.
• New home construction will follow the trend in existing home sales with a few months lag.
• Weakness in the manufacturing sector will cause employment to remain soft.

"The spring market will be relatively subdued with a lower presence of first-time buyers." said David Lan, CMHC's London Market Analyst. "It will take time to replenish the pool of first time buyers but move-up buyers will support sales throughout the year."

"Consumer buying patterns, particularly in more expensive southern Ontario markets, will increasingly shift to less expensive housing over the next few years thanks to tighter mortgage market conditions. This bodes well for the apartment ownership and rental sector," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Northern Ontario housing markets are an exception as strong activity in the mining sector and relatively more affordable housing will support growing demand for low density housing," added Tsiakopoulos.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. 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.