Housing Demand Set to Moderate Before Growing Into 2014

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2013) - Ontario housing activity will regain some momentum later this year and post modest growth into 2014, according to the First Quarter 2013 CMHC Housing Market Outlook - Canada Edition released today. Ontario housing starts are expected to decline and reach 60,800 units before registering 62,900 unit starts in 2014. Ontario housing starts will range between 57,200 and 64,400 units in 2013.

"Housing activity will slow in 2013 but regain momentum moving into 2014 thanks in large part to an improving Ontario economy, improved affordability and less outmigration to other provinces. Larger urban Ontario centres have been capturing a growing share of housing activity in recent years. A gradual shift in housing activity is expected in 2013. Smaller urban housing markets such as Windsor, Thunder Bay, Sudbury and London will outperform thanks to an ongoing US economic recovery and relatively more affordable housing," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist.

Demand for less expensive resale homes will hold up better over the forecast horizon. MLS^® sales across the province will range between 176,800 and 205,800 units in 2013. Ontario home prices will remain stable in 2013 before posting modest growth in 2014.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. 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. CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.

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To view the figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/854795FIG.pdf.