LONDON, ON, Nov. 20 /CNW/ - Demand for housing will continue to be strong
in 2008 in the London Census Metropolitan Area (CMA), with new home starts and
existing home sales well above their historical averages, according to Penny
Wu, Canada Mortgage and Housing Corporation's (CMHC) Market Analyst for the
London area. CMHC released its latest forecast today at the annual London
Housing Outlook Conference.
"Homes in the London CMA are relatively more affordable than homes in
most of the surrounding census metropolitan areas. Low mortgage rates and
ample choice in both the new and existing home markets will continue to
attract Londoners to move into homeownership." said Wu.
Other highlights of the report include:
- New home construction will top 3,000 units for the sixth year in a
row in 2008. Single-detached home starts will be close to 2,000 homes
in 2007 and 2008. Rental apartment construction will remain robust.
- Existing home sales in 2007 will set a record of 9,400 sales in 2007
and decline a mere four per cent to 9,060 sales in 2008.
- Average new home and existing home prices will increase more than six
per cent in 2007 and four per cent in 2008. New listings in the
resale market will continue to increase and reach a record level of
15,760 homes in 2008. The resale market will move towards a more
"Moreover, employment growth will support income growth and attract
people to the London area. Demand for ownership and rental homes will stay
high," added Wu.
In Ontario, there will be increasing demand for multi-family homes.
"Higher mortgage carrying costs and slower job growth in higher paying
employment sectors in 2008 across Ontario will shift demand towards the less
expensive multi-family home sector, which includes townhomes and apartments,"
said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "A tight resale
apartment market combined with a backlog of apartment sales that have yet to
commence construction, will further support activity in the multi-family home
sector," added Tsiakopoulos.
As Canada's national housing agency, Canada Mortgage and Housing
Corporation (CMHC) draws on over 60 years of experience to help Canadians
access a variety of quality, environmentally sustainable, and affordable
homes-homes that will continue to create vibrant and healthy communities and
cities across the country. For more information, visit www.cmhc.ca or call
For further information:
For further information: Penny Wu, Market Analyst, London, Canada
Mortgage and Housing Corporation, (519) 873-2426; Angelina Ritacco,
Communications and Marketing Consultant, Canada Mortgage and Housing
Corporation, (416) 218-3332