GTA Housing Market to Remain Resilient

TORONTO, ONTARIO--(Marketwire - May 30, 2011) - The Canada Mortgage and Housing Corporation (CMHC) released its Spring Housing Market Outlook report for the Greater Toronto Area (GTA) today.

Highlights of the report include:

• MLS®sales and average price growth in the GTA will moderate in the second half of the year. Sales will total 86,000 units in 2011 and prices will average 4.3 per cent growth for the year.

• Housing starts in the Toronto CMA will rise by 11 per cent to 32,500 units on the strength of condominium apartment construction. New condo sales are expected to slow in the remainder of the year, however starts will remain elevated as many pre-construction projects on the market begin work.

• Continued improvements in the labour market will lower unemployment and increase income growth, with positive spin-off effects for the housing market next year.

"Home sales are expected to cool over the next six to nine months as first-time buyers begin to pull back. However, the extended low interest rate environment will lead housing market activity in 2011 to come in stronger than originally anticipated," explains Shaun Hildebrand, CMHC's Senior Market Analyst for the GTA.

"By next year, the recent strength in immigration and the creation of higher-paying full-time positions should add momentum back to the market," adds Hildebrand.

To view the graph "Toronto CMA Housing Starts", please visit the following link:

http://media3.marketwire.com/docs/tcmahse.pdf

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.